Non-bank 'massively expands' broker distribution

by Adam Smith27 Jun 2012

Homeloans has labelled its acquisition of Refund as a major win for its branded distribution.

The company has completed its purchase of the embattled Refund Home Loans business, more than eight months after the business entered administration. The deal sees Homeloans expand its branded distribution by adding 54 former Refund brokers to its current stable of around 20 branded brokers.

Homeloans general manager of funding and investments, Scott McWilliam, said the deal would "massively expand" the company's branded distribution.

"We issued 135 broker agreements, and 54 of those came across. We're very pleased with those that have. The 54 that came across represent a large proportion of the settlements and book of the Refund business," he said.

McWilliam said the acquisition represented a positive step for Refund brokers who had struggled through a protracted period in administration.

"It's a good win for those guys. They've been through a pretty rough time over the last nine months. If we can help them grow their volumes and grow their business, that works for them and it works for us," he said.

McWilliam said the Refund brokers who had aligned with Homeloans as part of the deal were already operating as Homeloans brokers, and receiving marketing and BDM support.

"We've been in communication with them throughout the whole process leading up to completion. They're out there carrying our brand, and we will continue to provide them with marketing support to help grow their business in the local community," he said.

The acquisition is part of a strategy implemented by Homeloans to grow its broker distribution network, McWilliam said.

This transaction fits perfectly with Homeloans’ strategy to expand through organic growth and acquisitions. From our perspective it was a mutually beneficial match and fit. They needed a home and brand to broker underneath, and we’re out there looking for ways to grow our distribution either organically or via acquisitions.

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