Mergers and acquisitions continue in non-bank mortgage sector
Listed financial services group Firstfolio has made another key announcement today, saying it is in advanced, exclusive talks to acquire the $1 billion mortgage business Domain Financial Services.
Firstfolio has entered a 45-day period of negotiations that it hopes will lead to an acquisition of the NSW-based Domain Financial Services and its $1 billion mortgage-managed loan portfolio.
A successful acquisition would bring Firstfolio’s mortgage loan portfolio under management to $11.5 billion. In 2006, this aggregated loan portfolio was less than $2 billion, with growth sought through acquisitions and partnerships, the group said.
Domain Financial Services chief executive Mark Moenting said the mortgage industry landscape had changed dramatically over the past 12 months. Moenting believes Domain’s broker and client base would now be best served as part of a larger entity.
Firstfolio chief executive Mark Forsyth said in a statement to the Australian Securities Exchange that the group’s intention is for Moenting to join Firstfolio as head of wholesale services. Moenting said Firstfolio intends to continue in the consolidation of the non-bank mortgage sector.
Established in 1997, Domain Financial Services operates within the greater Sydney region. The Firstfolio group has a presence in NSW, Queensland, Victoria and Tasmania, with more than 800 intermediaries.
Yesterday Firstfolio announced that it had entered into an agreement to acquire Australia’s largest online mortgage broking platform, eChoice.
As well as the online sales and processing platform, the acquisition includes eChoice's $2.6 billion mortgage book and proprietary.
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