Mortgage originator and manager Firstfolio completed six acquisitions in the 2008 financial year and continues to be a buyer.The first is mortgage aggregator eChoice, with a portfolio of $2.6 billion in brokered mortgages and which increases the Firstfolio loan book to more than $10.5 billion.eChoice has operated since 1998, with a focus on online mortgage broking.Mark Forsyth, chief executive officer for Firstfolio, said pricing a mortgage book in the current environment is relatively easy."The earnings of the eChoice book are pretty well known, so you just look at the history, how it has grown and the run-off, then the cash flow that will be generated over the next three or four years, and then the value is discounted backwards."In the year to June 2007 eChoice reported earnings of $1.7 million on revenues of $11.3 million. The firm had $9 million in net assets at the time. The 2008 earnings of eChoice have not yet been filed with ASIC.Forsyth said the pricing calculation for purchasing a mortgage book has changed only slightly in the last twelve months of market turbulence."If it's a high quality book, its cash for cash, so if the book really does spin off a level of cash then what you negotiate with the seller is the discount, the potential run-off."The rationale for buying the business is to know how to manage the book when you take it over."Forsyth said eChoice approached Firstfolio regarding a purchase, with the negotiating process taking around two months. Due diligence is set to be completed by the end of October.Consideration for the deal comprises $3 million payable over four years, which Forsyth said is not a set amount each year, expecting it to be less in the first year then increasing in future years.An additional 60 million Firstfolio shares will also be issued, with an agreed share of the loan book receipts over four years, which Forsyth expects to total $12 million to $15 million for the period.Firstfolio has favoured a scrip portion of consideration for acquisitions, with outstanding shares increased 77 million to 369 million over the last year. Forsyth said large investors are not concerned with the continued share dilution.