‘Aussie’ John Symond interested in buying back Aussie Home Loans from Commonwealth Bank

John Symond has raised the prospect of buying back the business he started in 1992.

John Symond says he’d be interested in reacquiring the mortgage business he sold to Commonwealth Bank. Picture: Darren Ornitz

Aussie John Symond, who orchestrated an assault on the banks in the nineties, could be about to re-emerge as a force in the nation’s $1.8 trillion home loan market.

The Aussie Home Loans founder has for the first time raised the prospect of buying back part or all of the business he started in 1992 to shake up the mortgage market.

Commonwealth Bank bought Aussie from Mr Symond in a series of transactions over the past decade, amounting to $660 million in cash and bank shares. The final 20 per cent was sold two years ago.

But over the past 12 months, under chief executive Matt Comyn, CBA has been selling off assets including its life insurance, global asset management and Count Financial business to refocus on its core banking operations after a spate of scandals.

Aussie and CBA’s stake in listed broking group Mortgage Choice have also been earmarked for divestment.

Asked about CBA’s plans to retreat from mortgage broking, Mr Symond said he was open to participating in a sale to ensure the group ended up in the “right home”.

“When the time comes, do I take a chunk of it? All of those are options,” Mr Symond told the Aussie biennial mortgage broking conference.

He said Commonwealth Bank had assured him it would engage with him before deciding on the final structure of its exit from ­Aussie.

Mr Symond, who turns 72 this month, told The Australian that personally he was not interested in buying Aussie in its entirety, but he was open to the idea if his nephew, company chief executive James Symond, got involved. “It is subject to so many things,” he said, noting CBA had not begun a formal sale process or outlined its price expectations.

“I want to make sure the company continues to do well. It’s a possibility.

“I’m just keeping watch. I said to them (CBA) I wanted to assist,” Mr Symond added.

“Whoever ends up buying it will probably want to talk to me and James to get our feedback, which gives me a chance to ascertain whether they will be a good fit for Aussie.”

Mr Symond, who remains Aussie’s chairman, said after speaking to CBA he believed the bank was not yet ready to actively consider a sale, but it was likely to happen over the next six months to two years.

CBA had initially hoped to spin off its financial planning, platform and mortgage broking businesses as one company listed on the ASX. That plan has probably changed following the sale of Count Financial and last week’s decision to shut down planning unit Financial Wisdom.

The bank sold Count at a fire sale price of $2.5m after buying it for $373m in 2011.

CBA has also completed the divestment of Colonial First State Global Asset Management to Japan’s Mitsubishi UFJ Financial Group for $4.13 billion.

Alongside Wizard founder Mark Bouris, Mr Symond was among an early group of mortgage market disrupters that sought to loosen the banks’ stranglehold in the home loan market.

His slogan ”At Aussie, we’ll save you” became synonymous with the company.

“I’m still here, still supporting and doing what I can,” he said of his continued interest in Aussie.

“We have got the loyalty here. The tenure of Aussie is far greater than a PAYG (pay-as-you-go) employee and these are self-em­ployed people.

“The culture of Aussie has ­always been a family — terrific culture.” On the ongoing engagement with CBA, Mr Symond said the bank had allowed Aussie to run autonomously since taking full ownership.

“I never thought we’d exit Aussie to a big bank. We’ve never had an argument (with CBA). They’ve left us alone — they’ve honoured that,” he added.

But the tensions between the broader broking industry and banks were, however, on full display last year at the Hayne royal commission. Mr Comyn endorsed a shift to a flat fee model for mortgage brokers that would lower their current commission-based pay.

Aussie was also in the royal commission’s sights when it was revealed that the group hadn’t promptly disclosed to regulators and customers the fraud committed by one of its mortgage brokers. The broker in question was terminated once the matter was investigated.

Mr Symond said following a tough period of scrutiny the industry had to focus its efforts on continued improvement.

Commissioner Kenneth Hayne recommended broking commissions — which are paid upfront and annually over the loan life — be scrapped in favour of a direct fee model to guard against brokers being incentivised to act in their own interests rather than the customer’s.

But the broking sector was able to successfully lobby the government against the move, saying it would make the industry model unviable and limit consumer choice. Commissions were retained but the government will review the broking market in three years.

Mr Symond said Aussie had bolstered the services it provided borrowers after a mortgage settlement and would continue to evolve and improve. “Brokers have had a rough trot over the past couple of years. Your head is on the block and I think that’s a good thing,” he said.

Brokers account for about 60 per cent of new home loans written in Australia. Aussie’s website says it has a loan book of $70bn, 200 retail stores and more than 1000 mortgage brokers.

The conference was attended by more than 800 Aussie brokers, franchisees, team members and industry partners.