The second major mortgage joint venture announcement this week is the Glenn meeting.
Glenn Sanford eXp World Holdings announced on Thursday it would establish a mortgage joint venture with Glenn Stearns’s Good lendingis called Lending Success… Application arrives 48 hours after Compass as well as Guaranteed rate told about final agreement create your own mortgage joint venture, OriginPoint…
Compass and Guaranteed Rate did not disclose details of their partnership, but more is known about the success.
An eXp spokesman acknowledged that the company was not ready to launch as it was trying to get a license in every state. In an email to HousingWire, Stearns said he hopes to launch Success by October. Success President will be announced next week, Stearns said.
The company will be headquartered in Santa Ana, California, where Kind Lending is located, Stearns said. But “successful lending will follow the same path as eXp and will be mostly virtual.”
Hiring loan officers will be the main key to success, both companies admit.
“Successful lending requires the most qualified mortgage professionals in the country who are committed to the highest quality of service and the best customer service,” said an eXp spokesperson.
Many OSs still have a relatively full portfolio due to lower-than-expected mortgage rates and slow-growing housing stock – it will be difficult to convince them to leave their current stores.
Kind Lending began in April 2020 with a focus on wholesale lending after Stearns ran his eponymous mortgage firm Stearns Lending for over two decades. Stearns left the company after it filed for bankruptcy and bought Blackstone Groupand he starred on Discovery Channel’s reality show “Secret billionaire»Before the founding of Kind.
“Kind started out in wholesale because our team was not only very good at wholesale, but because it was the easiest way to scale,” Stearns said.
Kind since then opened a retail channel and claims to have raised nearly $ 4 billion in her first 12 months as a company.
EXp, meanwhile, follows in the footsteps of not only Compass, but most other national brokerage firms, including Realogy as well as HomeServices of Americawhich have their own mortgage division.
During the pandemic, a 12-year-old company from Bellingham, Washington, became a darling of Wall Streetpartly due to the Sims style virtual broker. Not even a week has passed without eXp announcing the influx of new agents (now there are more than 50,000) or expansion into new countries (19 by the end of September this year).
But eXp shares fell from a high of $ 80 a share in February to $ 33 as of Friday. The company currently has a market capitalization of $ 4.2 billion, less than half of its previous market value.
It’s unclear how much pressure eXp agents might be under to steer their clients towards success. Federal law requires real estate transactions and mortgages to be conducted separately, but that hasn’t stopped the recent increase in joint ventures.
When asked if agents would be pushing for Success, an eXp spokesperson said, “Our agents have the right to independently recommend any mortgage lending option to their clients so that they can really find the best solution. But we are confident that successful mortgage lending will become the preferred mortgage lending option due to their level of service. ”