Homeloans appears set to ramp up its branded broker distribution with a possible play for Refund Home Loans.
In a letter obtained by Australian Broker, Homeloans has been named as a potential major shareholder of Independent Mortgage Professionals (IMP), a franchisee bid to purchase Refund Home Loans. The move would see Refund franchisees rebrand as Homeloans branded brokers.
In the letter, IMP has told franchisees Homeloans has "indicated its preparedness" to become the major stakeholder, and provide the funding necessary for IMP to purchase Refund. The deal would require Refund brokers to terminate their existing franchise agreement, and sign a new Homeloans branded broker agreement. It would also see franchisees remain under current aggregator, Choice.
Homeloans chairman Tim Holmes previously told Australian Broker the lender would look to ramp up its distribution.
"We are well-placed to distribute going forward, and make a pretty healthy margin. We are in every state, and I think by bolstering our distribution capacity and with a proven track record in mortgage management, we will be ready to distribute new product," he said.
Holmes said the company currently had around 20 branded brokers. The IMP letter to franchisees said the majority of 60 of Refund's larger franchisees had already confirmed "their indicative level of support" for the deal.
Franchisee bid a prime Refund contender