A non-bank created by former Pepper executives has partnered with an ASX-listed lender to start a new mortgage business.
Asset finance lender Azora Finance has entered into a joint venture agreement with ASX listed lender FSA Group, forming a new mortgage lender, Azora Home Loans.
As part of the new joint venture, the FSA group subsidiary Fox Symes Home Loans (FSHL) has changed its name, taking the name of the new entity.
According to Azora, the new company seeks to combine FSHL’s resources and specialized mortgage infrastructure – which includes its direct loan origination, credit, customer service, collections and loan management teams – with the capabilities distribution of Azora Finance.
FSA Group Executive Director Tim Odillo Maher said the partnership would help bolster the lender’s loan portfolio, which totaled $ 382 million at the end of fiscal 2019 (FY19).
“Over the past 12 years, we have proven our ability to successfully create and manage non-conforming home loans,” he said.
“Our low level of arrears and losses is the market leader. However, we have not been able to increase our loan pool and our earnings to the desired level. “
He continued: “In order to grow, we need to further develop our product offering and expand our external origination and distribution channels. “
Sir Maher said he was confident the company would succeed in achieving its goals, highlighting the experience of Azora Finance’s leadership team.
Azora Finance is owned and operated by a consortium, which includes former Pepper Money co-group CEO Patrick Tuttle, former Pepper COO David Holmes, former Virgin Australia group treasurer Philip Sullivan and former director credit to Pepper Andrew Paterson.
Mr. Tuttle, executive director of Azora, added that the joint venture would provide its clients and accredited brokers with access to an expanded suite of financial solutions.
“We are really proud of our ‘build on us’ mantra, giving Australians access to fast and flexible funding to meet their immediate needs, goals and aspirations,” he said.
“This joint venture with the FSA group allows us to offer a range of tailor-made mortgage lending products to Australians, combined with our existing asset finance solutions, allows us to better serve our target markets.
“Whether you are a small business owner looking for a flexible home loan or are fed up with being fussed with by banks or other lenders unable to understand your financial situation, we aim to be the lender. of choice for SMEs and specialists. borrowers.
David Holmes, also executive director of Azora Home Loans, revealed that the new company will offer a “wide range of mortgage solutions,” including products for the self-employed and small business owners, borrowers looking to consolidate their debts and consumers who have been turned away by their bank.
“We intend to provide a real alternative to existing specialist mortgage lenders, both for brokers and clients, by offering competitive risk-based mortgage prices, combined with reliable credit decisions, standards of highly professional service and quick turnaround times, ”added Mr. Holmes.
“We are nimble and will focus on underserved borrowers who are currently unable to settle into what has become an interim mortgage environment in the wake of the Royal Banking Commission.”
Mr. Tuttle concluded: “Azora is a new face and brand in the Australian financial services industry, supported by a management team with extensive experience in building and operating businesses specializing in mortgage lending and issuance programs. RMBS related.
“In addition to our industry-leading service standards, consistent and prudent application of responsible lending standards, and our digital-centric DNA, Azora will provide brokers and clients with an exceptional experience as we aim to be up to date. pioneering non-bank mortgage lending. and the SME lending sector for the years to come.
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Charbel Kadib is the Mortgage Securities Editor at Momentum Media.
Prior to joining the team in 2017, Charbel completed internships with the public relations agency Fifty Acres and the Department of Communications and the Arts.