The market's top five aggregation groups are losing their grip on mortgage market share, as they face growing competition from emerging smaller players.
The market's top five aggregators groups wrote just 49% of all mortgage business in the December quarter 2011, down from the 55% they wrote during the same quarter in 2010.
This marked a 13% contraction in the top five's total share of broker business year-on-year.
These failing fortunes, depicted in data from Market Intelligence Strategy Centre (MISC), have been put down to the NCCP and channel rationalisation which is impacting established power bases.
"It underpins the changing fortunes of some of the more established aggregators and the growing strength of their emerging competitors," a statement from MISC read.
"The erosion of share by the dominant groups is impacted on first by the restricted growth opportunities of the larger groups, next by individual broker member attrition and finally by the tougher climate which sometimes favours emerging new groups more," MISC said.
The data shows that not all individual top five members suffered, with two aggregators growing business and market share, while another two lost business and market share.
The MISC statement said new fee models now increasingly available to brokers had encouraged some migration, buoyed by the tougher financial climate. As a consequence, some larger aggregators had been affected by attrition in the lead up to the December quarter.
MISC said while its research findings refer to a small pool of top mortgage market aggregators, it is unable to name who these specific aggregation groups are, due to the design of the research, which uses codes in place of aggregator names to protect broker data.
The MISC data also found that after previous rapid rises in refinance activity, refinance lending in the December quarter reflected a "negligible" 0.5% growth, or 26% of all loans written.
Refinancing previously grew 11.4% in the June quarter, which MISC said coincided with the peak of the aggressive switching campaigns enacted by the major banks.
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