Under the terms of the agreement, Firstfolio will provide wholesale mortgage funding, telephone and web-based loan administration services and training to more than 140 LJ Hooker home loan consultants. A two-month pilot leading to today’s agreement has seen LJ Hooker receive applications for around $30 million in new, house-branded loans, suggesting strong prospects for loan volumes written by the group under its partnership with Firstfolio.
LJ Hooker now joins Medibank Private, AV Jennings and Virgin Money as the fourth partner to sign onto BLOOM, Firstfolio’s proprietary B2B mortgage and financial services e-platform developed following its acquisition of online broker, www.eChoice.com.au, in 2008.
Firstfolio Chief Executive Officer, Mr Mark Forsyth, said: “LJ Hooker is another leading household brand to invest in our BLOOM model, which is helping to broaden and diversify our wholesale distribution business.
“In March this year we recorded the strongest ever month in new loans written, against an industry backdrop where overall new housing finance figures were beginning to slow.
“Our partnerships model with big brands is testament to our innovative approach in establishing a leading financial services distribution brand. We can see plenty of new opportunities to expand BLOOM, we just have to continue to work hard at it,” he said.
Firstfolio launched BLOOM in 2009 as a stand-alone B2B web based application that enables its brand partners to offer a tailored home mortgage solution. The agreement with LJ Hooker is an extension of the BLOOM model, under which Firstfolio will process all loan applications on behalf of LJ Hooker’s clients, using its proprietary telephone and Internet-based system.
LJ Hooker Executive Chairman, L. Janusz Hooker, said: “There is a healthy tide of prospective property buyers in the market today wanting a fair, fast and more flexible product to finance their investment.
“We’re very confident about coming back into the market with our own branded product, which offers one of the most competitive rates available, low entry and exit fees, and one of the fastest turn-around times in the business supported by 150 home loan consultants across Australia,” said Mr Hooker.
“Our pilot with Firstfolio has been very successful, delivering around $30 million in new loan applications over two months, and attracting outstanding client feedback.
“Based on this early response and the strength of the market generally, we are optimistic of achieving consistently strong monthly loan volumes under the partnership by the end of the year. There are plenty of attractive opportunities for both buyers and sellers at the moment and we believe the market will regain momentum over the next 12 to 18 months,” he added.
