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Mortgage broker valuations

Mortgage broker valuations

Like professional practices, mortgage brokers often have little or no productive tangible asset base. What they do often have however is a book of business. This intangible asset can be potentially valued in its own right and this can be a key area of dispute, see Nettler and Nettler (2007).

Another potentially contentious component of value is the market salary for the owner operator; see court cases Corbon & Klousner (2015) and Scott & Scott (2006).

Key mortgage broker valuation components include the number of clients, average fee per client, the average client period, client demographics, service manager details, salaries and commissions paid to staff and location and terms of the leased premises.

Examples of mortgage broker valuation engagements include the valuation of a group of mortgage broking businesses for bank finance.