The deal, which is for an undisclosed sum, represents a strategic investment for Mortgages plc. Genesis Managing Director Barry Robson, and Business Development Director Nigel Gardner, will both stay in the business and retain responsibility for day-to-day operations. Mortgages plc will maintain a ‘hands-off’ working relationship with Genesis; allowing it to continue operating under its own management as it has so successfully done to date. Mortgages plc’s only regular involvement will be from Tim Cooley, Chief Financial Officer at Mortgages plc, who will sit on the Genesis Board.
Mortgages plc Chief Executive Trevor Pothecary, said: “Mortgages plc is delighted to have concluded this deal, which is a key part of our overall future distribution strategy. Genesis is an important player in the intermediary mortgage market and its intention to become a network Principal will further strengthen this position. We know Barry and his team well and I have confidence that our two companies will be able to work effectively together.”
Genesis Managing Director, Barry Robson, said: “This is an important development for Genesis. Mortgages plc will bring not just financial strength but also management expertise, which will be invaluable as we develop our network proposition in readiness for ‘M’day. We have worked with Mortgages plc as one of our panel lenders for some time and know that the synergies are right between the two companies. I have no doubt this will be a great business partnership.”
Genesis comprises two key business units: Genesis Home Loans, a branded lender which distributes via a national network of packagers, and Genesis Mortgage Services, a packaging operation which also operates a direct-to-lender submission facility and mortgage club. Genesis Approved Network, which was announced in November 2003, will be the Principal firm which will provide network support to Appointed Representatives after regulation is introduced in October 2004.
Mortgages plc was founded in 1997 and launched in March 1998. It has securitised over £1.2 billion of non-conforming mortgages to date. With a head office in the City of London and a processing centre in Glasgow, Mortgages plc markets a range of specialist products via a network of mortgage packagers and intermediaries based throughout the UK. During 2003 Mortgages plc launched its ‘Mutual Collective’ initiative, a scheme in which it originates non-conforming mortgages for a ‘collective’ of smaller building societies. The Company has strategic ambitions to further diversify its distribution base during 2004 and beyond and the acquisition of Genesis is a key part of that strategy.
