As one of the conditions in the proposed merger with Kalgoorlie-based bank Goldfields Money, Finsure said that it would complete an acquisition of Nationalcorp’s wholesale portfolio.
The mortgage manager has a $725 million white label loan book.
The deal, which was completed on 31 January 2018, increases the size of Finsure’s wholesale portfolio to $2.2 billion and total historical book to $30.6 billion.
Nationalcorp Home Loans will now come under Finsure’s Better Choice Home Loans brand (which last year consolidated Iden Loan Services, Future Financial and Pioneer Mortgage Services under its brand).
Barry Parker, Nationalcorp’s CEO, will reportedly remain “an integral part of the company” and be involved in an advisory capacity, while the day-to-day running of the business will fall under the remit of Better Choice Home Loans’ newly appointed chief operating officer, Natalie Sheehan.
Speaking to Mortgage Business about the Nationalcorp deal, Ms Sheehan said: “Nationalcorp complimented our strategic growth initiatives in a number of verticals, including: an increase in funds under management to deliver business scalability; acquiring additional experienced and highly regarded credit; customer service and sales staff; access to additional wholesale funding relationships to widen our product solution shopfront; and, ultimately, expanding our broker network with brokers that are already comfortable recommending a mortgage manager as a real alternative for their customers.”
Ms Sheehan added that she hopes the move would result in “an improved broker and customer experience with an expanded range of product solutions”, particularly noting that brokers will benefit from “sharper rates on prime owner-occupied and investment loans, a wider range of alternative documentation loans for their self-employed borrowers, together with expat loans, commercial and lease doc products”.
She said: “The significantly expanded product range will all be available utilising the one application form.”
Better Choice appoints new COO
Natalie Sheehan first joined the Better Choice brand in September 2017, when she was made the head of relationship management, following several years as a senior BDM at Homeloans Ltd.
She now takes up the role as COO, which has been vacant since the departure of former COO Troy McLachlan, who left the brand in September 2017 to become COO at Generation Mortgage & Property.
Following the announcement of her appointment, Ms Sheehan said that she was passionate about the opportunities ahead for the Better Choice business and working with the team of mortgage professionals the company had assembled following its recent acquisitions.
“Our dedicated scenarios team offers a two-hour service level agreement (SLA) on scenarios submitted via our online platform, something our brokers find invaluable in delivering comprehensive solutions to their borrowers,” Ms Sheehan said.
The COO added that Better Choice will continue to work with its funding partners to develop residential and commercial products that offer real solutions to a wider range of borrowers.
Final steps of merger
In an update to the ASX, Goldfields Money outlined that the Nationalcorp deal would add $1.2 million to Finsure on a pro-forma consolidated basis in the financial year 2019 (based on current run-rate cash earnings before interest, tax, depreciation and amortisation excluding net present value of future trail income).
Another condition of the Finsure-Goldfields merger was for Bendigo and Adelaide Bank to consent to the transaction. The bank holds a receivables acquisition and servicing agreement with Goldfields Money. The bank has now reportedly provided its consent, and other conditions of the merger transaction are currently in progress.
The transaction is expected to be completed in March 2018, pending consent from shareholders.
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Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.