Mortgage group acquires BMC loan book

The book was purchased for an undisclosed amount by Advance Investment Securities Australia (AISA), an affiliate of the Resi Mortgage group of companies.

AISA’s Russell Murphy told Mortgage Business that the BMC portfolio is “fairly large” and has been a complicated deal to tie-up given the multitude of providers involved.

“You tend to find that each of the different providers moves at their own pace and has different requirements, so you’ve got to know what you are doing,” Mr Murphy said.

“We are midway through the process,” he said. “The big parts of the process are done and dusted and there are still a couple of smaller parts to go.”

Mr Murphy said that AISA is part of mortgage manger Resi, which sold its retail distribution businesses to Yellow Brick Road for $36 million back in July. 

The acquisition left AISA with a broker offering, online HomeloanHQ.com.au and commercial and residential securitisation warehouses, Mr Murphy said. 

“We see ourselves pursuing basically online organic growth into the future,” he said.

Mr Murphy confirmed that he is actively looking to acquire further mortgage books, a process he is well accustomed to.

“I’ve bought books in Melbourne from a guy who is a property spruiker, I’ve bought a book here [in Sydney] from some other guys, I bought a book from a guy in Brisbane who decided to retire,” he explained.

“For BMC, I think they were looking at the landscape and wondering whether they could get sufficient scale to warrant staying or whether they were better off pursuing other things,” Mr Murphy said.

While AISA is an RMBS issuer, none of the BMC portfolio will go into a securitised offering.

The group has strong relationships with funders Advantedge, Resimac and Firstmac, and is a big believer in non-banks, Mr Murphy said.

“We also have relationships with Vow, PLAN, FAST and Choice,” he added.

“In the aggregation space we have relationships with all of the providers.”

Mr Murphy stressed that since YBR’s acquisition of Resi, his company is only loosely affiliated with the group.