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Morgtgage broker Industry

Discussion in 'Business & Startup Investing' started by Triu, 10th Aug, 2007.

  1. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Hi anyone tell me how mortgage brokers get accompanied with a Aggregator? Is there a recruiting agency for jobs in this industry?
     
  2. MattR

    MattR Well-Known Member

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    23rd May, 2007
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    Location:
    Sydney
    I'll be talking with a mortgage broker on Monday, so I'll ask him.
     
  3. tonyused

    tonyused Active Member

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    9th Jan, 2008
    Posts:
    32
    Location:
    Perth, Western Australia
    I'm a mortgage broker.

    After getting the necessary qualifications & joining the required professional industy association, in my case the MFAA, I approached the Aggregator that gave me the best deal, in client service, trailer commissions, etc, etc.
     
  4. The Stig

    The Stig Well-Known Member

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    3rd Dec, 2007
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    Location:
    Central Coast NSW
    Can someone educate me please.
    I have a vague idea, but what exactly does the Aggregator do?
     
  5. willy1111

    willy1111 Well-Known Member

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    5th Jul, 2006
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    Location:
    Melbourne
    To get access to the big banks, you would need to be doing some pretty heavy volume, ie $5M per month, so if you wanted the big 4 on your panel you would need to be doing in excess of $20M per month in loans.

    So the aggregator sits between the broker and the bank, and the aggregator might have hundreds of brokers which combined would easily write the necessary volumes.

    So a broker writing $2m of loans a month would be able to access a wider variety of lenders if they go through an aggregator.
     
  6. The Stig

    The Stig Well-Known Member

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    Location:
    Central Coast NSW
    Thanks willy1111 :)
     
  7. tonyused

    tonyused Active Member

    Joined:
    9th Jan, 2008
    Posts:
    32
    Location:
    Perth, Western Australia
    That's it Willy.

    The Aggregator has what is termed a panel of lenders.

    A typical number would be about 30-35 lenders on its panel so the brokers under the aggregation group can access these lenders to provide, say home loans for their clients.

    The aggregation group, then provides all the support & services required for a broker working in the industry. Like professional development, software, CRM systems and most importantly for the broker the calculations & payments of the commissions payable by the lenders.

    The Aggregator makes their profits by retaining a percentage of the overall commission payable by the lenders, typically about 10%.