Too early to tell on Refund deal

by Adam Smith16 Apr 2012

Homeloans says it's too early to tell the impact a mooted deal with Refund would have on its branded distribution.

Homeloans has been named as a potential major shareholder of Independent Mortgage Professionals (IMP), a franchisee bid to purchase Refund Home Loans, in a move that would see Refund franchisees rebrand as Homeloans branded brokers.

But Homeloans general manager of funding and operations Scott McWilliam told Australian Broker it was thus far difficult to gauge the impact of such a deal.

Because of the protracted administration process, McWilliam said Homeloans was uncertain how many franchisees remained with Refund. IMP has sent a non-binding expression of interest letter to the franchisee network, which McWilliam indicated Homeloans would use to gauge the potential number of franchisees the company could net from the deal. He said should the numbers "stack up", Homeloans was interested in seeing the deal through.

Homeloans chairman Tim Holmes told Australian Broker the company currently had "circa 20" branded brokers. A letter from IMP to Refund franchisees has claimed that the majority of the company's top 60 brokers have expressed interest in the Homeloans deal.

Regardless of the outcome of the deal, Holmes said Homeloans would ramp up its distribution throughout the year, and tipped further expansion of its branded broker network as a strategy for distribution growth.

Related stories:

Homeloans eyeing further branded distribution

COMMENTS

  • by Meeeeezy 16/04/2012 10:56:25 AM

    Any solution is better than watching SVP slowly milking every last dollar from Refund commissions each month and doing nothing in real terms to secure a buyer.

  • by Terry 16/04/2012 12:09:17 PM

    I agree Meeeeey. the winner is or will be SVP regardless of an outcome.