Mortgage manager and aggregator Firstfolio announced yesterday that it was in exclusive talks to acquire Club Financial Services, a mortgage manager and broker with a $2.8 billion book.Firstfolio would pay $15.7 million upfront and a deferred payment of up to $4.3 million (subject to loan settlement targets being met) within 12 months. The transaction is still subject to due diligence. If completed, it will take Firstfolio's loan book above $20 billion.The company has made $12 billion of loan acquisitions in the past two years, with the takeovers of Apple Home Loans, LeaseChoice, First Chartered Capital, Loan Services Australia, Xplore Capital, and eChoice.Firstfolio executive director, Mark Flack, said part of the appeal of the current deal was that Club Financial Services has a $1 billion funding line from Advantedge, which would be maintained.Firstflio has funding arrangements with ING Direct and Adelaide Bank, as well as a small facility with Advantedge through Xplore.An unusual aspect of the deal is that Club Financial Services has risk insurance and wealth management brokerage businesses.Flack said the group was looking at expanding into wealth management, although it had not yet determined how the business model might work.He said: "We think one outcome of the new licensing regime is that there will be convergence between financial planning and mortgage broking."If we go ahead with the acquisition we will hold on to the wealth management part of the business. There are some issues to work out around fees, with financial planners moving to a fee-for-service model."According to the company's statement to the Australian Securities Exchange yesterday, the acquisition would lift forecast earnings for the 2011 financial year from $15 to $16 million of earnings before interest, tax, depreciation and amortisation, to $17 to $18 million.