A new major mortgage aggregator is set to be launched in the new year resulting from a merger agreement between three existing groups in the sector.
The news comes after The Mortgage Professionals, National Brokers Group and The Brokerage all agreed to band together to form one single aggregator that will have over 900 brokers operating in its network, with around $16 billion in loans under its control.
A new name will be announced when the deal is finalised, which is expected to take place in early 2010. At that time the new organisation will also undergo a rebranding exercise.
Jeff Zulman has been chosen as the proposed chief executive for the new group.
"This is an exciting development for this industry. The new business offers all the advantages of size while losing none of the traditional broker-focused values of these three aggregators. Certainly the business model we have devised is creating interest in the marketplace," Zulman said.
The new entity's main focus will be assisting the brokers operating under its banner to grow their businesses through the provision of a variety of support services, he said.
National Brokers Group chair Rod Lange pointed out the new organisation will be able to provide brokers with the best possible commercial environment under which to operate in regard to technology, training and regulation.
"This merger could not come at a better time for brokers. Brokers are realising that their skill set, which enables them to provide clients with the best mortgage deals, can be developed to enable them to offer an alternative on related financial services," he said.
According to The Mortgage Professionals chief executive Michael Nicholson, the merger will create economies of scale brokers can use to their advantage.
The move will give control and power back to mortgage brokers, The Brokerage chair Geoff Smith said.
