REA Group’s financial services division, which includes the Mortgage Choice broker franchise operation, was hit hard by the slowing mortgage market in the second half of last year, suffering a drop in loan settlements, revenue and earnings. REA acquired Mortgage Choice in July 2021 and merged it with its Smartline business to form the core of its financial services division. REA released its results for the six months to December on Friday, reporting that all Smartline brokers have migrated to the Mortgage Choice brand and system. A new customer relationship management system was launched in December and the integration of the businesses is in its “final stages”. The group has been busy signing up new brokers, with numbers growing from 1002 at the end of June last year to 1037 at the end of December. Its focus on integration and expansion may explain the 11 per cent fall in loan settlements to A$11.6 billion, compared with the previous corresponding period. The division’s operating income fell 14 per cent to $34.7 million and its EBITDA fell 49 per cent to $8.7 million. The loan book grew 3 per cent to 87.7 billion, although all this growth was due to a restatement of loan book values following a change in measurement methodology as part of the Mortgage Choice integration. Mortgage Choice paid 78 per cent of commissions received to brokers.  The company said financial services revenues are likely to remain subdued in the second half.