Firstfolio Aggregation Professional Development Day November / December 2012

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 –

FLeaTS.support@firstfolio.com.auPh: 1300 883480

Would Like to Thank

Platinum Sponsor

Silver Sponsor

Bronze Sponsors

Associate Sponsor