Mortgage broking industry consolidation continues
The consolidation in the mortgage broking industry continues, with two mid-size mortgage broking groups announcing plans to join forces.
The proposed merger of mortgage broking groups Smartline and Mortgage Force will create one of Australia’s largest franchised broking companies, a joint statement from the groups said.
The merger is expected to be effective from July 1 this year.
The merged company will consist of 220 franchises nationally, with more than 100,000 clients. The groups estimate annual volumes will total in excess of $3 billion per year, while the company’s loan portfolio will be worth more than $10 billion.
Smartline has more than 140 franchise businesses across Australia, while Mortgage Force’s presence is predominantly in the Western Australian market.
The groups said the Mortgage Force brand will be retained in Western Australia, while the Smartline brand will be adopted across the rest of the country.
Smartline managing director Chris Acret said that among benefits, the merger would strengthen the combined group’s position with its lending partners.
Many members of the mortgage industry are under pressure to create new alliances in the face of increasingly tight credit conditions.
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