REA goes into receivership

plant43

Registered User
Messages
393
Just got an e-mail from the guy I dealt with in REA - they have gone into receivership as of a few hours ago.
 

G123

Registered User
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117
Depressing really.

Wonder how a 'discount broker' have been so badly hit in a downturn?
 

Brendan Burgess

Founder
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48,371
That is a pity. They were good guys.

I suppose with the huge drop in mortgages and the fall in commissions, they could not generate enough fee income to cover their fixed costs.

Most other mortgage brokers also have significant income from pensions and investments advice. I don't think Rea got much of that.

Brendan
 

LDFerguson

Registered User
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4,417
No I think it's a straight question. It would be reasonable to assume that when times are tough, people would make more of an effort to seek out the best deals and would therefore discover discount brokers.

Sorry to see Rea going - their model was innovative and their founder, Richard Eberle was genuinely customer-focused.
 
R

rmelly

Guest
No I think it's a straight question. It would be reasonable to assume that when times are tough, people would make more of an effort to seek out the best deals and would therefore discover discount brokers.

True, but the number of people out there looking must be a fraction of what it was 18 months ago, so how could we expect all brokers to survive, regardless of whether a disvount broker or not? I'm assuming that re-mortgages and switching has also falled significantly given dropping LTV, and higher rates etc?
 

LDFerguson

Registered User
Messages
4,417
Undoubtedly mortgage business of all sorts has dropped greatly in recent times. I just would have thought that a broker offering a better deal would be doing more business in hard times than a broker who offered an inferior deal. Or in other words, I would have thought that other "non discount" brokers should by rights have gone into receivership first due to the downturn. But I guess business doesn't work like that.
 

LadyJane

Registered User
Messages
139
A loss for the Irish consumer. We got our mortgage with the help of Rea in Bray last year and I can't say anything bad about them. A genuine pity. :(
 

NorfBank

Registered User
Messages
2,097
It is a sad day. I should disclose that I used to work for REA until I opened up on my own and not only was REA a good company to work for, it was a great place to learn. The staff were genuinely enthusiastic about helping clients and getting the best deal for them (even though I have read some people had bad experiences with them - I guess that's inevitable). Richard was a true innovator and his model should have worked but it seems the credit crunch has bitten another good guy.
 

Kemo_Sabe

Registered User
Messages
241
anyone know what the impact of all the banks cutting their broker commissions have been on REA? tipping point for them?
 

NorfBank

Registered User
Messages
2,097
anyone know what the impact of all the banks cutting their broker commissions have been on REA? tipping point for them?

They survived back in the day when an average mortgage was about 50,000 punt so at 1% commission this was 500 punt. Average mortgage now is 400k so even at 0.5%, commission is €2000.
Commission cuts would have had an impact but anyone here can only speculate as to what was the tipping point.
 
E

eberle

Guest
It is a matter of great regret that REA Mortgage Choice is in the process of winding down our operations. This is due to the dramatic downturn in the market. Over the years REA has attempted to introduce choice and service into the Irish mortgage market and I am very proud of the level of service and innovation that REA advisors and administrators have brought to their clients.


We will maintain a skeleton staff to assist all REA clients with existing loan offers to get them through to check issue. All clients will be emailed details of these arrangements very shortly.


Richard Eberle
 

fobs

Registered User
Messages
619
Its a great pity they are going alright. THey made many a contribution on this site over the years and always offered impartial advice. They will be missed.
 

birdy

Registered User
Messages
118
Also got my mortagage through Rea, pleasure to work with,made a very stressful time less stessful and hope the staff will be successful in getting new jobs.
 

ubiquitous

Registered User
Messages
3,782
I think its a good time to thank Richard and his current and former colleagues in REA (SarahW springs to mind) for their generous and insightful contributions to AAM over the years. I hope everything works out well for you in the future.
 

Sarah W

Registered User
Messages
1,169
I heard the news today and am devasted that such a honest, honourable, ethical and intelligent business has failed. It's not only a tragedy for the staff, who were my colleagues and good friends but for the Irish mortgage market which has lost perhaps it's only 100% customer focused brokerage.

My heart goes out to Richard and his family and all the staff.

It was an honour to have been part of REA.

Sarah.
 
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