RE/MAX LLC, one of the largest franchisors of real estate brokerage services is now getting into the mortgage business with the launch of a new mortgage brokerage franchise. The new business venture, dubbed Motto Mortgage, will focus only on forward mortgage loans and will open mortgage franchises throughout the U.S.
Motto Mortgage loan originators will work with real estate offices with the intent of its agents helping homebuyers obtain mortgages that best fit their individual needs, according to a news released issued Tuesday by RE/MAX Holdings, Inc. (NYSE: RMAX).
“The RE/MAX model remains unique and continues to thrive because we have the best agents in the business who deliver exceptional service,” said RE/MAX CEO, Chairman and Co-Founder Dave Liniger during an invitation-only gathering of RE/MAX franchise owners in Dallas and Orlando. “Today we are extending our core competency of franchising into the mortgage origination market by introducing Motto Mortgage.”
Independent mortgage brokers’ share of the mortgage origination market dropped significantly following the economic downturn, falling from a 15-year average of 22%—with a high of 35% in 2006—to just 10% in 2015, Liniger noted.
“Mortgage brokers bring choice and service to the consumer and Motto Mortgage will work to expand the market share of mortgage brokers and bring better mortgage choice and service to consumers as a result,” he said.
The new division plans to inspire new specialists to join the profession by offering them tools, resources and built-in relationship with a real estate brokerage, including direct access to agents.
Pairing a Motto Mortgage franchise with a real estate brokerage means, according to RE/MAX, homebuyers can work with a real estate agent to find a home and with a Motto Mortgage loan originator to secure financing in office at one location.
Originators working with Motto Mortgage will also not be bound to the products of one specific lender, but will have access to loan options from various sources.
“We look forward to the return of mortgage brokers and skilled loan originators to the market,” said newly named Motto Mortgage President Ward Morrison, who was been with RE/MAX for 11 years and most recently served as Vice President, Region Operations and Business Opportunities. “Our priorities will be educating, training and supporting our franchisees so that they can provide exemplary customer service to their clients.”
Based in Denver, Motto Mortgage will now begin actively selling franchises in certain markets. RE/MAX plans to discuss the launch of Motto in more detail during its third quarter earnings conference call on Friday, November 4 at 8:30 a.m. Eastern.
Written by Jason Oliva