Remax purchases mortgage fintech Wemlo, adding processing services
Remax Holdings, which owns mortgage broker Motto Mortgage, has bought up-and-coming fintech company Wemlo, which provides loan processing technology.
The terms of the transaction were not disclosed, although Remax stated in an investor presentation filed with the Securities and Exchange Commission that the compensation would be cash and stock.
Wemlo is a 20 month old company based in Fort Lauderdale, Florida and employing approximately 30 people. It has developed a “Service Cloud” for mortgage brokers that combines third-party loan processing with an all-in-one digital platform.
“The acquisition of Wemlo … helps solve one of the mortgage broker’s biggest problems – ineffective mortgage loan processing,” said Adam Contos, CEO of Remax Holdings, in a press release. “This acquisition also diversifies our revenue and growth opportunities and strengthens our M&A strategy of adding innovative companies that deliver value and improve the customer experience.”
Ward Morrison, President of Motto Franchising, will run Wemlo with co-founders David Rogove and Steven Gelley.
“The acquisition will give themed mortgage franchises more competitive advantage,” said Morrison. “With the demand for quality execution assistance in the mortgage broker channel, Wemlo will continue to serve its customers and continue to market its end-to-end solution throughout the mortgage broker industry.”
Wemlo generates revenue by collecting mortgage brokerage fees for processing credit per file.
“The platform has automated tasks and an intuitive framework that credit processors of all skill levels can use to manage the workflow and provide a high level of service to the lenders they support,” said Gelley.
Motto recently sold its 200th franchise since the company was founded in October 2016. In the twelve month period ended June 30, 60 units were sold. There are currently over 125 Motto Mortgage Units in operation that are independently owned and licensed.
While Motto units were originally marketed to Remax real estate agent franchisees, they are now being offered to franchisees of other real estate companies as well as independent operators and mortgage brokers.
“Adding the product line of this like-minded startup innovator increases the firepower of Motto Mortgage’s value proposition and opens up tremendous growth potential for Remax Holdings in the mortgage brokerage channel,” said Contos.