The mortgage and real estate marriage trend continues, these times with Realogy and Guaranteed Rate joining forces to produce a new venture known as \”Guaranteed Rate Affinity.\”
This new partnership will result in a massive mortgage origination platform that pairs the nation\’s eighth largest retail mortgage broker with the world\’s largest franchisor of real estate brokerages.
Under the agreement, Guaranteed Rate can provide its mortgage lending services to Realogy\’s property brokerage company NRT, as well as its relocation subsidiary Cartus.
Some of Realogy\’s NRT real estate investment brands include Climb Properties, Coldwell Banker, Corcoran Group Real Estate, Sotheby\’s International Realty, and ZipRealty.
Guaranteed Rate Replacing PHH as Lender of Choice
Part on the undertaking will involve the acquisition of 4 regional mortgage origination and processing centers previously belonging to PHH Home Loans, along with its relocation division and some of its employees.
PHH used to provide these types of services to Realogy but has been reducing its mortgage footprint currently.
The move should allow Guaranteed Rate so you can get its hands on a lot more purchase mortgage business, a trend which includes grown in popularity as refinance activity continually wane.
Perhaps home buyers can take advantage of their \”Double Match\” loan program that only requires a 1% down payment.
It\’s no secret that refis aren\’t as hot as they quite simply once were, this despite the 30-year fixed still averaging around 4%. But many homeowners already took advantage when rates were inside the 3% range, lessening the incentive for this anytime soon.
Refis Are at Their Lowest Level Since 2009
The Mortgage Bankers Association reported now that the refinance share of total mortgage activity fell to 46.9%, the lowest level since June 2009.
This is taking place even as purchase activity barely ticks higher-
The hope is always that Guaranteed Rate can turn its focus from refis to purchases by marketing its lending services for the roughly 800 offices and 47,500 independent sales associates that comprise Realogy’s NRT.
NRT did approximately $167 billion altogether residential real estate volume in 2015 and has now been ranked number one nationally in existing home sales volume for the past 19 years.
If Guaranteed Rate may get even a small slice of this action they\’ll be in great shape, even if the refinance business completely tanks.
They aren\’t the very first ones to get this idea though. Back October, Motto Mortgage came to be by RE/MAX Holdings to offer the first-ever franchised mortgage brokerage that pairs real estate brokers with mortgage brokers.
It\’s unique for the reason that it allows real estate agents to choose an agent who can shop the buyer\’s loan which includes a variety of companies, not just usually the one a captive bank employee could offer.
Then we got a big surprise late a few weeks ago when Redfin Mortgage unveiled itself. Everybody seem to want to get in over the real estate and mortgage trend. Naturally, why wouldn\’t you want a one-stop shop for all of your real estate and financing needs?
For the record, brokers apparently influence lender choice in nearly half of home purchases. Basically, they\’ve got a lot of power and brokers want to make sure they\’re the very first ones they call.