YBR settled $4bn in 4Q23

Yellow Brick Road Holdings Limited (YBR) has released its financial results for the quarter ended 30 June 2023.

During the three months ended 30 June 2023, YBR settled a total of $4.6 billion in residential and commercial loans, representing 4.1 per cent increase compared to the previous quarter.

The group’s consolidated entity, which includes mortgage broking, aggregation (through Vow Financial), and management services, played a crucial role in driving this growth, the report noted.

As a result, YBR’s loan book expanded by 1.1 per cent to $62 billion over the quarter, compared to $61.4 billion in the previous quarter.

This marked a 7.1 per cent increase when compared to the same period last year, signifying sustained growth in the company’s lending activities.

The net cash flow from operating activities also saw a surplus of $0.9 million, largely attributed to a substantial $185 million increase in settlements.

As part of its growth strategy, YBR acquired non-bank lender Resi Mortgage Corporation in 2014, alongside aggregator Vow Financial.

The company aimed to integrate product manufacturing with an extensive distribution network and it is now reaping the benefits, with the Resi arm showing impressive growth recently.

Mark Bouris, the company’s key executive, expressed his satisfaction with Resi’s results, noting that the mortgage industry has been a “massive learning curve”.

Resi’s settlements for the six months to 31 December 2022 were approximately $300 million, building on the $428 million in settlements over the year to 31 June 2022.

Mr Bouris described the growth of Resi as a “complex algorithm” with many different working parts.

“You need a good mezzanine funder who understands the products. Then you need to build a team who can execute on credit solution,” he said.

idutch joins VOW/YBR

Meanwhile, the commercial fintech lender, idutch, has surpassed the pilot phase of its partnership with VOW Financial/Yellow Brick Road Home Loans, leading to an expansion of their collaboration.

During the nine months since the partnership started, idutch facilitated $200 million in loan submissions, with settlements totaling over $70 million. The platform allows brokers to enter their clients' requirements and ranks the most suitable private lenders for the clients, streamlining the process of assisting commercial borrowers.

[Related: Mark Bouris says Resi has been a massive learning curve]