Mike Pero Mortgages (MPM) chief executive Jeff Staniland told the company’s annual meeting yesterday that “we are yet to see the full financial impact of these changes on our financial performance.”
“It may be over three years before the impact of the changes in remuneration structure are apparent.”
He says that in the last financial year (nine months) the company arranged $1.2 billion of mortgages, which, on an annualised basis equates to $1.5 billion, compared to $1.3 billion in the year to June 2005.
MPM has grown the number of franchisees to 44 during the year, and the total number of mortgage brokers has increased to 57.
During the year the company sold one new franchise in South Canterbury. This sale has nearly completed the roll out of the Mike Pero brand in regional New Zealand that MPM embarked upon 18 months ago.
Staniland says the focus “now turns to increasing the productivity of our franchisee mortgage brokers and also to leveraging their success and encouraging them to expand their businesses by engaging loan writers to work for them.”
“One initiative to increase productivity is the introduction of new mortgage broking software. We are currently in the process of implementing a software package which should help our franchisees be more productive by providing greater customer relationship management functionality.
Staniland say there is uncertainty over the company's future ownership structure, but the MPM is taking a "business as usual" approach.
“The company is well positioned for on-going growth both organically from the improved productivity of our existing brokers and by the addition of more franchisees and loan writers. This combined with our on-going marketing efforts, a greater focus on repeat and referral business together with the strong Mike Pero brand should ensure we continue to play a leading role in the mortgage origination market.
