fff buying brokers loan books

Well

Its been quiet for a couple of months and not much happening on the rumor mill. However, Forsyth has now sent a letter to all small brokers offering to buy their loan books at 1 times the annual return of the book. Example - A small broker has a loan book of 20 Million and earns say $2000 per month (24K per year) - FFF are offering them 24K for the entire loan book.
This is about half the real value of the value of loan books advertised elsewhere in Aust - just google it if you do not believe me.
The thing is the entire broker industry is being forced into higher fees and more regulation (such as being registed by ASIC) and the part timers and smal time players have had enough. FFF and Forsyth is the winner as they are picking up loan books at a fraction of the price of there real worth.
While there are some up fron costs, this should help with there bottom line next year.

Buy while the prices are low.