Australia-based PLAN (the Professional Lenders Association Network) is to provide commission distribution and broker software systems to New Zealand's Mortgage Express, part of the Harcourts real estate agency group. The two groups have also entered into an alliance where PLAN New Zealand brokers may sub-contract to Mortgage Express to provide broking services to customers of Harcourts.
The two groups say that they are to remain independent broker groups but that both are looking to "realise economies of scale and administrative synergies".
Andrew L'Almont, chief executive of Mortgage Express said: "Mortgage Express elected to utilise PLAN Australia's services because the transition was seamless for us, our brokers and our panel lenders. The commission payments systems and broker software has been developed to support New Zealand broker groups and we all benefit from the economies of scale and professionalism of the support team in Melbourne."
"Mortgage Express and Harcourts are in the unique position of being able to generate more mortgage opportunities for brokers than anyone else in New Zealand. Where Mortgage Express itself cannot service these leads we will work with selected PLAN NZ members."
The announcement comes against a background of falling incomes for broking groups following cuts in bank commissions last year, a sharp slowdown in housing transactions and reduced availability of funding following the international credit crisis.
PLAN said that the provision of commission distribution services and broker software to large broker groups, on a fee-for-service basis, was a vital part of its strategy in the current market. PLAN NZ members were expected to settle $1.5 billion of loans in the year to the end of June 2008. This compared with more than $2 billion for the year before but the company said it remained confident.
Ray Hair, chief executive of PLAN NZ said that the industry continued to face testing times. But there were opportunities for brokers to improve productivity and to diversify income. PLAN NZ wanted to increase the number of quality brokers and their productivity.
