Remax-affiliated Motto Mortgage doubles originations in 2020
Themed Mortgage, Remax’s mortgage broker franchise business, saw explosive growth over the past year. The operators doubled their combined origination volume year-on-year.
The 141 business outlets produced $ 2.47 billion in 2020. In 2019, the company’s 111 locations represented $ 1.1 billion at the time.
“Closing out nearly $ 2.5 billion in network credit each year is a remarkable achievement, especially in a challenging year like 2020 – only our fourth full year of operation,” said Ward Morrison, president of Motto Franchising LLP, in a press release: “2020 was a record year for themed franchise sales, and the fourth quarter was our best quarter in the company’s history.”
Remax launched Motto as a turnkey mortgage brokerage business in October 2016. Motto only charges franchise fees per office from its operators. Each franchisee is responsible for arranging their own loans to the wholesaler.
In 2020, Motto sold 71 of its franchises. This is both an annual record and an increase of more than 35% over 2019.
Although Remax owns the franchisor, Motto stores have also been sold to real estate agents affiliated with other companies, as well as independent operators.
Motto is working on a new concept called “Branchise,” says the Remax 10-K file.
Offered to existing themed franchisees, these offices are similar to a satellite office at a traditional mortgage lender. It enables them to expand their physical and / or virtual presence for a reduced contract fee.
“The goal of these new models is to give franchisees the flexibility to expand their business to locations where it would not have been possible to support a full additional franchise while ensuring compliance with government agency regulations,” said Remax 10-K.
There were two offices open as of January 31, the company added.
Last August, Remax bought Wemlo, which provides processing services to mortgage brokers. The company paid $ 6.1 million in cash and $ 3.3 million in common stock, plus additional stock-based compensation of $ 6.7 million.