Mortgage company Firstfolio passed an important milestone in June when it finalised a new senior debt facility. The deal brought an end to two years of disruption for the company, which went on an acquisition spree in 2010 and 2011 and then found it could not service its debt when the mortgage market turned down.Most of the news about the company since then has been about its stop-start efforts to recapitalise.However, while the drama with bankers, investors and departing CEOs was being played out, management was working to integrate all the acquisitions and turn them into a viable business.The transformation of Firstfolio, as well as the legacy of its debt problems, was on display when the company released its 2013/14 financial report yesterday. It reported a loss of A$4.1 million, compared with a profit of $1.3 million for the previous year. Revenue was down 4.2 per cent to $78.6 millionHowever, mortgage settlement volumes were up 15 per cent to $3.2 billion, and broking volumes were up 23 per cent.And the company reduced its net debt by $5.7 million to $56.3 million during the year to June.Over the past couple of years Firstfolio has reorganised the business into two brands: Folio, which is a mortgage manufacturing, funding distribution and management business; and eChoice, which is an aggregation and broking business.Firstfolio company secretary, Dustine Pang, said the large number of acquisitions led to confusion in the market. The company needed a clearer brand strategy and it needed to get efficiencies from all the businesses it had acquired.Folio, which was formed from the Calibre, National Finance Club and other acquisitions, has a securitisation platform and wholesale funding arrangements with ING Direct, Advantedge, Adelaide Bank and others.It creates product that it sells to its own customers and it offers a white label service to brokers and affiliates.eChoice, which was formed from Apple Loans, First Chartered Capital and other acquisition, provides brokers and aggregators with fully qualified leads. It has its own brokers and also services third parties.Pang said the eChoice business model was focused on using digital channels to produce leads. For example, it uses the Domain real estate website to identify people looking for a home loan.