Redfin closes $138m deal for mortgage lender


red fin finalized its acquisition of Bay Equity Home Loanspaying $137.8 million for the mortgage transaction in its quest to provide customers “one-stop shopping” where they can buy, sell, rent and finance a home, according to a company press release.

Seattle-based Redfin previously announced plans to acquire the lender, but CEO Glenn Kelman said the move was particularly timely as buyers face bidding wars and high house prices. . the customer’s offer.

“In dozens of markets, the field organizations of Bay Equity and Redfin have already met, and the difference in our agents’ enthusiasm to recommend a Redfin mortgage to their clients is night and day: because Bay Equity has hundreds rather than dozens of loan officers, because Bay Equity supports all types of loans, because Bay Equity was already one of the highest rated lenders to Redfin’s clients. But the main reason why we expect to start is how much the two teams have already enjoyed working together,” Kelman said in the press release.

The purchase price “represents a $72.5 million premium to Bay Equity’s tangible book value” as of Feb. 22, according to the press release. The move allows Redfin agents in 91 markets to begin referring clients to one of Bay Equity’s 400 local loan officers. Monday.

Bay Equity CEO Brett McGovern also touted the benefits of the acquisition saying, “Being part of Redfin will help us meet customers more efficiently, which means we can offer Redfin homebuyers competitive rates. while providing a seamless experience from pre-approval to closing. ”

Bay Equity will continue to operate under its own name and retain its California headquarters and current management, according to the press release. Loan officers will continue to “refinance and purchase loans for clients working with Redfin agents as well as clients working with other brokerages.”

Cracking the Code on Marketing to the Realtor Channel

As lenders adapt to a purchase-centric market, HousingWire spoke with Brian Boero, CEO of 1000watt, about opportunities to increase lender efficiency in the real estate agent and broker market.

Presented by: 1000 watts

Prior to the completion of the Bay Equity acquisition, Redfin laid off 121 employees from its mortgage division.

McGovern said he doesn’t expect “Redfin agents to recommend us to clients because we’re part of the same company, but because of the value and service we provide. Alignment with Redfin recognizes our 14 years of strategic growth nationwide and sets us on a path to becoming a top 10 lender.
In February, HousingWire published an in-depth analysis of Redfin’s unique business model, which includes iBuying, search portals and, perhaps most interestingly, salaried real estate agents.


Comments are closed.