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Macquarie Bank to create fifth largest aggregator

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Australian Broker | 03 Sep 2009, 08:54 AM Agree 0
Macquarie Bank is set to re-enter the mortgage space, according to BusinessDaily.
  • Hakan K | 03 Sep 2009, 09:19 AM Agree 0
    Seems like not many aggregators left that aren't owned by a bank. How ironic..
  • Andrew | 03 Sep 2009, 11:00 AM Agree 0
    Macquarie never invested in business that can't on paper offer a 25% return on investment, just look at sydney airport!!!

    Yes will be some saving centralizing back office of these aggregator groups but Macquarie will increase they share of commission pie or increase fees for IT & marketing in order to make this an attractive investment, because that what investment banks do

  • Joe | 03 Sep 2009, 12:03 PM Agree 0
    Banks created the need for aggregators so they deal with volume only and not multitude of broker mini deals. Recently some banks require individual brokers to qualify for volume even though they go through aggregators. Wierd!

    Now baks are buying up Aggregators... Hmmmmm What does it all mean? Is it good stability for us Brokers with Aggregators being owned by strong balanxce sheet company or is there some negatives for us (and our clients) in the future?
  • Stephen | 03 Sep 2009, 12:06 PM Agree 0
    Macquarie left the industry when the going got tough. So what makes you think when their return on investment isn't there or the industry goes through another down cycle, which is inevitable, that Macquare will be there to back us up. History has a point of repeating itself. Regardless of their commitment to the future and all the "spin" they have already shown their commitment to the industry in the past.
  • David | 03 Sep 2009, 12:16 PM Agree 0
    I agree with Stephen's comment. Macquarie has definitely shown they are only in it for the good times and they walk away in the bad times. I'd hate to be a Broker with one of those Aggregators and have Macquarie forced on me.
  • Mel | 03 Sep 2009, 12:23 PM Agree 0
    I wonder how "big" this aggregator will be if the majors follow through with their threats to cull low volume individual brokers.
  • Mick MD | 03 Sep 2009, 12:41 PM Agree 0
    Given Macquarie's treatment of brokers and clients when they pulled out of mortgages, they will never be trusted again. They have always put profit before people and this venture will be no different. Once they see less than spectacular returns and their brokers are NOT cross selling Macquaries "fries & dessert" they will once again depart the scene.

    Sounds like an exit strategy for the intending partners, not real good for brokers who have to work in the new Macq_Agg system.

    No Way .......... Once bitten............

  • neil | 03 Sep 2009, 12:51 PM Agree 0
    The banks coming into the aggregation space is a similar story to the banks and financial planning industry where they came into the industry and purchased or took shareholdings in dealer groups (which is the mortgage industry equivalent to an aggregation company)which ensured the future of financial planning industry.

    Sure the member groups have given Macquarie a share of their group, it certainly doesn't mean they control this group unlike the NAB purchase where they totally own them.

    Also dont forget that Macquarie are already in the aggregation space via AFG with 10% - a futher 10% being owned by life companies. So this isnt really a huge news story.
  • broker perth | 03 Sep 2009, 12:56 PM Agree 0
    Stability is a good thing. From sources on the inside it is expected that the commission model will be very close to that of Connective. From a broker who works for one of these aggregators its important that we have the volumes to remain viable. Boutique aggregators will no longer be able to meet the Lenders ever increasing demands, I see this a s a good thing.
  • Steve | 03 Sep 2009, 01:57 PM Agree 0
    How can some people sit there and wallow in their own SPIN? FACT: Banks exist to make profit. FACT: Banks don't care about average Joe. Never have, never will! FACT: Once they have their hooks into you, they only release when you have been bled dry. And here is a question for the NAB does it feel to have YOUR business sold from under you TWICE in 18 months with NO Input whatsoever? And they call you Members....give me a break!
  • SA Broker | 03 Sep 2009, 02:18 PM Agree 0
    Why would CBA give Macquarie accreditation to sell their products and would they also pay another bank a volume bonus ?
  • James Serafini | 03 Sep 2009, 02:24 PM Agree 0
    I note Macquarie didnt buy any exposure to South Australia. At least thats one shrewd move by Macquarie.
  • Broker | 03 Sep 2009, 03:35 PM Agree 0
    It's only a matter of time before the majors own all the major aggregators isn't it?, gee won't that bejust great?

    The majors will just continue to screw brokers , screw aggregators , and impose their corporate , bulling style bahaviour over everyone concerned.

    ACCC = tick

    Winners = banks

    Losers = everyone else

    It really is as simple as that folks
  • Mortgage Originator - Perth | 03 Sep 2009, 03:57 PM Agree 0
    Coles versus Woolworths versus IGA

    Shell versus Caltex versus BP

    CBA versus NAB versus Macquarie

    The big 2 or 3 in each market, muscle out the rest. So much for choice, for the consumer.

    How will the "unbiased" mortgage originators, who by law cannot recommend one product, or lender over the other (still maintain a minimum volume which is required by certain nameless lenders, to remain accredited) be able to function in this quagmire???

    I'm beginning to think I'm watching a train-wreck happen, in slow motion. At the moment, were all bracing for the impact - everybody grab hold of your MFAA pillow you paid for!!!
  • oldBroker | 03 Sep 2009, 04:13 PM Agree 0
    Boo hoo is all I read here. We're all victims except we brokers gave CBA/WBC 90% of our business last quarter when my software says that CBA is the 12th most competitive lender out there. We are digging our own graves by our own actions yet we need to play the victims.
  • BBB | 04 Sep 2009, 11:27 AM Agree 0
    1. I feel sorr for the brokers who are using the aggegators who are consolidating - sorry being sold off , but to Macquarie , who are not too well know for their ability to stay in the industry when it gets tough. As a PLAN broker , i feel vunsrable , but at least the new owners have a long term history. Good lick to all the brokers who will end up with the macquarie model.
    @. Why are all you brokers still giving the CBA/Westpac 90% of your business , are you stupid , these are the two who big bad banks who cut our commissions the most !! and their product suite is only just average, I am dumbfounded by brokers who still deal with these big bad bullies , kick em where it hurts and deal with the ANZ, BankWest ,ect
  • Dr W | 04 Sep 2009, 01:54 PM Agree 0
    Forgive my ignorance, but if Macquarie Bank are creating the 5th largest aggregator, who are the 4 largest aggregators and in what order?
  • The Broker Watcher | 04 Sep 2009, 03:05 PM Agree 0
    I guess it depends if you count Choice/FAST/PLAN as three separate aggregators but let's face it they are one when NAB takes over. The four Macquarie aggregators would be be doing combined.

    I reckon the top 5 Aggregators and beyond are:

    1. NAB Aggregation (Choice/Plan/Fast)
    2. AFG
    3. Aussie (now includes Wizard volume)
    4. Mortgage Choice
    5. Macquarie Aggregation (TMP, Brokerage, Specialist, NBG)
    6. Loan Market
    7. Astute Financial
    8. Smartline
    9. National Mortgage Brokers
    10. The Mortgage Gallery
    11. AMB
    12. Bernie Lewis Home Loans
    13. Mortgage Wisdom
    14. Ballast?

  • The Broker Watcher | 04 Sep 2009, 03:17 PM Agree 0
    Ok so 1000 Connective brokers would have to settle more than $500m...wouldn't they?

    1. NAB Aggregation (Choice/Plan/Fast)
    2. AFG
    3. Aussie (now includes Wizard volume)
    4. Mortgage Choice
    5. Connective
    6. Macquarie Aggregation (TMP, Brokerage, Specialist, NBG)
    7. Loan Market
    8. Astute Financial
    9. Smartline
    10. National Mortgage Brokers
    11. The Mortgage Gallery
    12. AMB
    13. Bernie Lewis Home Loans
    14. Mortgage Wisdom
    15. Ballast?
  • The Broker Watcher | 04 Sep 2009, 07:58 PM Agree 0
    1. NAB Aggregation (Choice/Plan/Fast)
    2. AFG
    3. Aussie (now includes Wizard volume)
    4. Mortgage Choice
    5. Connective
    6. Macquarie Aggregation (TMP, Brokerage, Specialist, NBG)
    7. Loan Market
    8. Astute Financial
    9. Smartline
    10. Firstfolio
    11. National Mortgage Brokers
    12. The Mortgage Gallery
    13. City Pacific
    14. AMB
    15. Bernie Lewis Home Loans
    16. Mortgage Wisdom
    17. Ballast?
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