Homeloans (HOM)

Shares / Stock Code

HOM

Stock Exchange / Sharemarket

ax

Homeloans (HOM) is a listed non-bank originator and manager of home loan mortgages with an already strong presence in Western Australia. The company is currently moving to significantly expand its eastern seaboard presence. The earnings base of HOM has historically been sourced from mortgage origination and, following on from this, loan management fees.

The Company operates in two segments: origination and management, and securitisztion of mortgages. The origination and management segment originates residential mortgages through external mortgage brokers, satellite offices and internal consultants.

The securitization of mortgages segment is the Company’s own funding source. Using a series of mortgage trusts, this segment packages groups of mortgages and issues bonds with rights to the principal repayments, and interest received from borrowers through a securitized mortgage trust. The principal activities were conducted under the brand names Homeloans Limited, Access Home Loans, Independent Mortgage Corporation Pty Ltd, Auspak Financial Services Pty Limited and FAI Home Loans.

Being the only listed non-bank mortgage originator Homeloans is well placed to participate in any sector consolidation, especially at the smaller end of the market as it can offer tradable equity and cash to fund acquisitions. Through recent acquisitions, HOM is beginning to give the operation sufficient scale to unlock synergies.

Major customers remain the general public who are seeking first homeloans or refinancing their current mortgage. Aussie Homeloans, Wizard compete directly with HOM in area of homeloan originators as do all the major and regional banks.

Homeloans History

HOM was founded in 1985 by Tim Holmes and Rob Salmon, both of who are now both joint managing directors, and majority stakeholders in the business. In its earlier years HOM had the key role as Western Australian agent for RESI, subsequently the Bank of Melbourne (BOM). When BOM established a presence in Western Australia in its own right, HOM linked up with other bodies. Following a $15m IPO, the Official Quotation of the listed securities in HOM commenced on 19 March 2001.