firstfolio aggregation professional development day november / december 2012
TRANSCRIPT
Firstfolio Aggregation
Professional Development Day
November / December 2012
Jul-1
1
Aug-
11
Sep-
11
Oct-1
1
Nov-
11
Dec-1
1
Jan-
12
Feb-
12
Mar
-12
Apr-1
2
May
-12
Jun-
12
Jul-1
2
Aug-
12
Sep-
12
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
FF Aggregation FF1 PBN Others
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12Jul-1
2
Aug-12
Sep-12
Oct-12
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Wholesale Conversion $
Submissions Formal Approvals Settlements
ACT 5%
NSW 48%
QLD 14%SA
2%
TAS 1%
VIC 28%
WA 2%
National Break Up
ANZ16% BankWest
4%
CBA14%
HSide/NAB16% ING
4% St. George
6%
Westpac25%
Other10%
NFC2%
Suncorp5%
Lender Break Up
AGGREGATION
WHOLESALE
SETTLEMENTS
2012 July - September $373 Million
2011 July - September $356 Million
˃ = $17 Million
> = 4.40% Growth
2010 July – September $351 Million
Applications $43 Million
Settlements $22 Million
AGGREGATION
WHOLESALE
Compliance & Risk Update1. Brokers and especially Credit Reps need to notify FirstFolio of any changes to their:
ACL or Credit Rep status EDRS MFAA / FBAA Membership PI Address details
2. Conflict of Interest Brokers need to ensure that any potential conflict of interest does not disadvantage their borrowers.FirstFolio’s client needs analysis has a section which identifies potential Conflict of Interest. Loan Writers should document any potential conflict and mitigate to ensure the clients are not disadvantaged by the potential conflict.
Examples: An associate of a broker selling real estate for which the broker arranges finance A marketing company associated with a broker that receives payment for each sale A financial planner / broker seeking funds for investment arranging a loan
Compliance & Risk Update3. A reminder about Exempt Referrers
If you have exempt referrers sending you leads ASIC require the ACL holder to maintain a Register of Exempt Referrers
4. Responsibility Lending Objectives (RLO) assessment - This is primarily about what you have documented:- Did you make reasonable enquiries e.g. purpose, product, objective etc- Did you take reasonable steps to verify e.g. purpose, objective, exit strategy and
income- Did you make a written assessment to confirm that the loan is not unsuitable
5. BROKER AUDIT RESULTS
APRIL = 55% Compliant filesSEPT = 85% Compliant files THANK YOU!!!
Important Lender Updates
0.575% Upfront< 0.625% previous qtr
Quality Metric Quarter 3 Target Commission Override
Submission Quality 90.2% 90%80%
0.05%
Conversion Ratio 74.2% 80%75%
0.025%
CBA Metrics – Quarter 3
CBA Metrics – Quarter 4Quality Metric Quarter 4 Target Commission Override
Submission Quality 92% 90%80%
0.05%
Conversion Ratio 86% 80%75%
0.10% 0.65% Upfront
= QTR $35000 UF Commission
ING Commission
Base of 50bps+Annual Settlement Volume to ING DIRECT
< $25m >= $25m and < $100m
>= $100m and < $200m
>= $200m
Application to
Settlement Conversion
< 60% - 2.5 bps 5 bps 7.5 bps
>= 60% and <
70%
2.5 bps 5 bps 7.5 bps 10 bps
>= 70% and <
80%
5 bps 7.5 bps 10 bps 12.5 bps
>= 80% 7.5 bps 10 bps 12.5 bps 15 bps
Quarter 3
.60% UF = 72.53% conversion
V$114 million rolling 12 month
Quarter 4
.525% UF = 56.67% conversion
V$96 million rolling 12 month
eChoice Lead Program
Number of Brokers 9 signed up
Leads 35 last week
Amount $16 million
Average $470,000
eChoice leads
August 300 / 106 million
September 330 / 124 million
October 552 / 218 million
November 300 / 130 million
Database Call ProgramClient
DatabaseSuccessful
ContactSuccessful Contact %
Email Transfer
Hot Transfer
Total Transfers
Updated Client Details
250 159 64% 18 8 26 52
26 Leads at 15% Conversion= 4 new loans
Average loan size $300K @ 60% UF commission
= $5,400
Less $500 call program fee= $4,900 net profit
Questions
Introduction:
Tony Harris
Executive Director
FirstFolio
12
Currently Trading Well
Firstfolio is trading profitably
Key figures from FY12 results:
Revenue of $104.7 million
Operating EBITDA of $15.2M
Net profit after tax of $3.2M
Active loan book incr. of 3.6%
$0.3b FIRSTFOLIO CAPITAL
BROKING
AGGREGATION
WHOLESALE$3.3b
$9.1b
$2.5b
$3.3b
$9.1b
$2.5b
Active Loan Book
3.6%Growth
$14.9b $15.5b
13
Well Positioned For the Future Agreement in principle signed with investment group for $50m in
additional capital
Placement at 3.5c/share (120% premium to 90 day VWAP of 1.6c/share)
Strengthens the balance sheet and provides further security for longevity of Firstfolio
Allows Firstfolio to be a serious competitor in the non bank/alternative bank sector
14
Constantly Improving We’re creating a company culture that is focused on clients
We’ve defined a clear strategy to improve customer satisfaction
“Customer First” program in place to improve operational and client retention processes
Clear targets in place for the next six months to measure our success
Questions
Next GenDavid Harris
National Manager – Broker Technology & Support
A new generation in electronic lodgement
FLeaTS new electronic lodgement.What is it?
• Latest technology lodgement facilities to an expanded list of lenders
• Accommodates cross population of client data from FLeaTS to NCCP to lender submission– This was the largest single item that came out of your responses
to the recent Broker Survey
• Feeds all lender application updates directly into your FLeaTS history – all history in one place
• Assists you to give even better client service
What we’re doing today The new Client Needs Review & Prelim. Assessment (CRN) Single data capture – FLeaTS to CRN to Loan application Validation of CRN and Loan application Submission to lender Selecting and printing documentation packs Lodging the submission Back channel reporting into FLeaTS
FLeaTS electronic lodgement – the process
Create your client in FLeaTS – no change Create your CNR (Fact Find) – limited change Submit to lender from either lead list or CNR
Entered information pre-populated Validate each page OR whole application Send to lender
Receive initial feedback immediately Conditional approvals Referrals Errors
FLeaTS “EL” – Advantages Save time – share data
between: FLeaTS Loan matching NCCP Loan application
Faster turnaround times with more lenders Improved customer service Lower error rates on submissions All updates from lenders go to FLeaTS history plus you get
SMS/email alerts (everything in one place)
FLeaTS
Loan Matching
NCCP Forms
ApplyOnline
How does it work?
Step 1. Establish lead in FLeaTSStep 2. Create CNR and other NCCP forms as appropriate
Step 4. Enter any missing information into CNR to gain validation. Anything entered in any part of FLeaTS will have carried across to CNR
Note mandatory fields *
Step 3. Populate form
Step 5. Obtain CNR validation and “Save Updates and Exit”
Step 6. Exchange CNR Form
Step 9. Review Validation errors and enter correct data
Step 10. Review validation warnings and, where required, amend data
View validation errors for whole application or page by page
Step 11. When application validated print online application pack.
Step 12. Print required forms ready to send to lender.
Back Channel Messages into FLeaTS
In summary – what it means to you
• It’s easy to use
• Huge time saving in processing your clients’ applications – provide better service
• No duplication of data – enter it once
• Receive all your application progress updates directly into FLeaTS (plus SMS/Email) – no more trawling lender site for updates
• Expanded list of lenders
• Easy cloning of files
Additional resources:
• Recorded tutorials – FF website• FLeaTS manual – FF website• Lodgement manual – FF Website• Webinar training sessions• FLeaTS Support –
[email protected]: 1300 883480
Would Like to Thank
Platinum Sponsor
Silver Sponsor
Bronze Sponsors
Associate Sponsor