Remax sells Motto Mortgage franchise to a competitor's affiliate
For the first time, Remax Holdings has sold a Motto Mortgage franchise to a real estate brokerage affiliated with a competing franchisor.
The Oldfather Group of Ocean Atlantic Sotheby's International Realty, based in Rehoboth Beach, Del., is the owner of Motto Mortgage Prosperity, which will open later this month.
"Motto Mortgage Prosperity offers an advantageous alternative for our real estate clients as we are able to have more control over the consumer experience and can offer one-stop shopping," Dustin Oldfather, CEO of The Oldfather Group, said in a press release.
"Usually mortgage is outside the control of the real estate agent. By purchasing a Motto Mortgage franchise, it means we have more control within that vertical, and therefore can extend the excellent customer service we already provide, by offering personalized mortgage guidance, strong communication in all aspects of the transaction and present competitive mortgage options from carefully chosen lenders. It is truly the best of both worlds."
The Oldfather Group has 24 agents and serves clients in coastal Delaware and Maryland.
Remax always planned to offer Motto Mortgage franchises to other real estate brokerages after the initial roll out to its own franchisees. Motto uses a mortgage broker model, with each franchisee responsible for securing proper licensing and selling their originations to wholesalers.
Of the over 100 franchises sold so far, there are several affiliated with independent real estate brokerages, including Spring, Texas-based Motto Mortgage Borrowers First with New Home Programs, and Motto Mortgage Platinum with Tyler Price Real Estate Group of Colorado Springs, Colo.
In addition, there are 10 offices that were sold to individual investors or mortgage brokers not affiliated with a real estate brokerage.
Remax Holdings sold 34 Motto franchises in the first nine months of this year, according to its third-quarter 10-Q.
Of those franchises sold, there are currently more than 70 offices open in 30 states.