RE/MAX’s Motto mortgage brand expands by 60 offices in 2021
The mortgage subsidiary of real estate franchise giant RE/MAX, Motto Franchising LLC, has helped its franchisees open 60 new offices in 2021, surpassing the goal of 50 new offices set by company president Ward Morrison last spring.
There are now 187 independent offices operating under the Motto Mortgage brand serving 38 states and Washington, DC, according to an announcement Thursday. The 12 states where the Motto Mortgage brand is not yet present are Alaska, Connecticut, Maine, Minnesota, North Dakota, Nebraska, New Hampshire, New York, Rhode Island, North Dakota South, Utah and Vermont.
Currency Deductible is marketed as a “turnkey mortgage brokerage” for real estate brokers, mortgage professionals or entrepreneurs who want to own their own mortgage business, offering technology, compliance, training and marketing.
Morrison – who has served as chairman of Motto Franchising since its launch in 2016 and took on the additional title of CEO on January 10 – told Inman last August that the company’s business model was also appealing to consumers. Unlike the lending agencies of many other real estate agencies, Motto Mortgage Brokers offer access to a network of wholesale lenders who offer competing rates and products.
Most Motto Mortgage franchise sales to date — 58% — have been through RE/MAX brokers, Morrison said at the time. But 13% of franchise sales were made to independent brokerages or brokers affiliated with a competing brand. The remaining 29% of sales were to entrepreneurs, investors or related business owners such as title insurers.
“The extraordinary growth we’ve seen from the Motto Mortgage brand and the rapid diversification of franchise ownership is testament to the revolution in our offerings,” Morrison said in a statement. declaration Thursday announcing the sale of the 300th Motto Mortgage franchise, with 187 offices open so far.
Growth of the Motto Mortgage Network
The opening of 60 new offices in 2021 represents an annual growth of 33%, with other openings in progress. A spokesperson for Motto Franchising told Inman in an email that the pandemic has complicated the process by jumping through the hurdles needed to license and open new offices.
“This industry – like so many others – is experiencing COVID-related staffing shortages that are lengthening the time it takes to process licenses and a Motto office cannot open until their state license has been approved and returned. active,” the spokesperson said. “The Motto team is doing an amazing job helping our franchisees navigate the licensing process and the multiple steps required to open their Motto offices and we are confident that once the impact of COVID lessens a bit , our office openings will accelerate.”
Since November, Motto Franchising has announced the opening of five new franchise offices in five states:
Morrison, who is also president and CEO of wemlo, a subsidiary of RE/MAX, a fintech provider of mortgage processing services that RE/MAX acquired to bolster Motto Franchising’s technology offering, is expected to receive more a quarter of a million dollars in bonuses this year.
Along with the impending departure of RE/MAX Holdings CEO Adam Contos this month, the RE/MAX board’s compensation committee awarded Morrison and three other top executives $1.188 million in bonuses. The bonuses are intended to reward executives for past performance and keep them employed at RE/MAX” given the company’s CEO transition and amid the highly competitive talent market, both in the areas of l ‘real estate than mortgages’. the company revealed in a regulatory filing.
Morrison is expected to receive a total of $280,000 in reward and retention bonuses, while RE/MAX CEO Nicholas Bailey will receive $312,000, RE/MAX CFO Karri Callahan will receive $308,000, and RE/MAX Chief Operating Officer and Chief of Staff Serene Smith. receive $288,000. Three-quarters of the bonuses were to be paid on January 15, with the remaining 25% payable on September 30, 2022 to executives still working at the company.
Last week, real estate brokerage Redfin announced it was expanding its presence in the mortgage industry by acquiring national lender, San Francisco-based Bay Equity Home Loans, for $135 million in cash. Bay Equity, which is licensed in 42 states and employs about 1,200 people, closed 25,338 loans totaling $8.5 billion last year.
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Email Matt Carter