"Aussie" John Symond's ownership of his mortgage broking empire has quietly come to an end, but not without another huge payday.
Commonwealth Bank of Australia has executed the purchase of Symond's remaining 20 per cent stake in Aussie, with the price eclipsing initial expectations.
The payment, which was made via 2.1 million CBA shares at $78.54 apiece, came in at almost $164 million and well ahead of initial expectations of as much as $90 million.
Symond is said to have been given the option to take stock or cash this time round, but opted for the former as he did in previous sell downs.
Sources said he had confidence in the domestic banking system and CBA's prospects, despite the bank's AUSTRAC and regulatory woes.
Street Talk foreshadowed CBA's move to full ownership of Aussie in March. The price for the group - which has a circa $70 billion loan book - hinged on Aussie's financial accounts for the year ended June 30.
That suggests Aussie had a strong period.
The last time CBA moved on Aussie was in 2012 when it increased its holding from 33 per cent to 80 per cent. That deal was said to value the broker at $420 million, whereas the latest sell down delivers Aussie an $820 million valuation.
Questions will now be asked about what plans CBA has for its minority stake in ASX-listed Mortgage Choice.
Sources said while CBA wanted a foothold in mortgage broking it was unlikely to target an acquisition of Mortgage Choice.
Interestingly, CBA's latest results showed home loans originated through its proprietary channels, such as branches, accounted for 57 per cent of new mortgages as at June 30. Loans through brokers sat at 43 per cent.
That reflected a move away from broker originated loans from a year earlier when the split between the two channels was 50 per cent each.
Banks pay upfront and trail commissions to brokers for introducing loans, but the remuneration model is facing increased scrutiny by the corporate regulator.
