Mortgage Link considers licenced entity model
Mortgage Link aims to write $1 billion worth of home loans this year and is considering becoming a licensed entity.
Friday, October 14th 2016, 1:12PM
Managing director Josh Bronkhorst says the group has nearly doubled in size in the past year and now has 31 principals.
The group works on a licensee model and is looking to get to between 50 and 60 principals in the next 24 months.
On Monday Mortgage Link will be the latest dealer group to be accredited to BNZ. BNZ started its re-entry into third party distribution with New Zealand Financial Services Group and Loan Market. Since then it has added Mortgage Express into the mix and now Mortgage Link.
Bronkhorst says if the Financial Advises Act review goes in the direction it is currently headed then Mortgage Link would most likely become a Licensed Entity as opposed to all its advisers becoming licenced.
He describes this as being “almost like” the current QFE structure, however QFEs are generally used for vertically integrated business to sell their own products.
If Mortgage Link goes down this track it would provide additional services to its members, and the company would need to take a role monitoring the quality of advice being given.
Currently the group is working with IDS and developing advice manuals.
If it became a licensed entity then the fee structure for its members would change (and increase).
Another change in the past year is that the group has provided Xplan as a CRM alternative to its members who currently use Finware’s iLend.
Members aren’t being made to switch CRMs, rather it offers two options. Xplan suits those who write mortgages and insurance while iLend is good for mortgage advisers, he says.
Mortgage Link now has a non-branded option for its mortgage advisers still owns 50% of Newark Broker Services (the other shareholder is Newpark Group).
Newark Brokers Services is expected to write around $200 million worth of mortgage this year.
Last year Mortgage Link launched Insurance Link which is designed to help its mortgage advisers ring-fence their clients.
Bronkhorst says it currently has 20 members and that is far more then he expected the group to have at this early stage in its development.
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