Collins Securities Purchases Heine Loan Book
After weeks of speculation, Managing Director, Rob Emmett confirmed this week that Collins Securities Mortgage Managers has purchased the Heine Home Loan portfolio from ING Bank effective from 1 December. The portfolio acquisition will position Collins Securities as the largest Victorian based non-bank lender bringing its loans under management to in excess of $600 million.
The sale by ING Bank arose as a result of the recent takeover by Mercantile Mutual Holdings Ltd of Heine Investment Management. The Heine housing division fell outside the core focus of that acquisition. Rather than retain the management rights, ING Bank was happy to see the business go forward and subsequently agreed to the sale.
Collins Securities’ founder and Managing Director, Rob Emmett, says the acquisition of Heine’s home loan portfolio will assist in positioning Collins as one of a handful of major mortgage originators in Australia. “The bringing together of the two loan books will immediately enable home loan processing to increase to in excess of $40 million per month. By early next year we have anticipated volumes will increase between $60 to $70million per month”, Mr Emmett said. Apart from the loan portfolio, the transition will include 4 key staff members and head of the Heine operations, Mr Glenn Mitchell.
Collins’ raises funds via Origin Mortgage Management, a subsidiary of the ANZ Banking Group, and Australian Mortgage Securities, a 100% owned subsidiary of Dutch based ABN Amro Bank NV.
Mr Emmett says the purchase of the Heine home loan portfolio will compliment the business in that “Collins Securities’ traditionally sources its business directly from retail sales, whereas Heine’s market share predominantly originates through a distribution network of intermediaries. The combination of these two niche markets will only strengthen Collins Securities’ position in the market place.”
Another key move for Collins is the creation of a Sydney office to cater more directly for its Sydney based clients. “The establishment of the Sydney office consolidates our commitment to servicing what is fast becoming our largest home loan market outside of Victoria”, Mr Emmett said.
The acquisition of Heine Housing loans ends a busy year for Collins Securities who also established a Property Due Diligence operation in June and are in the process of establishing commercial property and other lending products.
With margins for residential property lenders continuing to narrow as a result of intense competition we would expect to see more mergers and acquisitions take place as lenders seek volume to achieve scales of profitability.