Affiliated Mortgage/Title Entities 'Saving' Realty Firms

The ability to generate income from affiliated mortgage and title entities has been "the difference between life and death" for many real estate brokerages, members of the Real Estate Services Providers Council were told at their annual conference in Washington. "If they hadn't had mortgage, title and other affiliated businesses, they'd be gone," said Steve Murray of REAL Trends, a research organization based in Littleton, Colo. Chad Ochsner, broker-owner of RE/MAX Alliance, a Denver-based firm with 22 offices and some 800 agents, said that "having a good, solid mortgage partner" has helped his bottom line. "Real estate is now a loss-leader for our mortgage and insurance affiliates," Mr. Ochsner said. Jon Coile, president of Champion Realty, Annapolis, said the capture rate at his mortgage affiliate, HomeServices Lending, the largest of Wells Fargo's joint ventures, is way up because agents are "terrified" they will lose the deal if they take their clients to other lenders. "If you don't have mortgage and title in this market, you are dead-man walking," said Mr. Coile, whose firm entered the mortgage and title businesses in the early 1990s. Mr. Ochsner also cited an increased capture rate, noting that the down market has helped create an esprit d'corps among his agents and support staff.