REMAX Group halts Motto Mortgage expansion

The Real REMAX Group has announced that it will no longer pursue additional franchising of REMAX’s Motto Mortgage business, just days after The Real Brokerage closed on its acquisition of REMAX Holdings. The combined company will instead redirect its resources toward supporting a unified mortgage platform.

Vic Lombardo, who was named president of Motto Mortgage a year ago, has reportedly stepped down, and Kate Gurevich is moving into the role of CEO of One Real Mortgage as other leadership changes fall into place at the combined company.

Kelly Gill, who had been SVP of mortgage marketing at REMAX, has also departed the company, posting on LinkedIn that her role was over “as part of organizational changes.” Gill was with Motto Mortgage for over eight years and spent six years at wemlo, a mortgage processing company acquired by REMAX in 2020.

Gill wrote that she had the opportunity to help build and grow brands, and support an incredible network of entrepreneurs and mortgage professionals, in a constantly changing mortgage market. Several other members of her team were also impacted by staffing changes.

The Motto Mortgage business had already been experiencing negative growth, with franchise office count declining by 32% year-over-year in Q2.

Representatives for Real and REMAX did not immediately answer questions about the future of Motto Mortgage. Previous statements about Motto indicated that the business would continue to operate under its current brand, with an April 27 email to Motto Mortgage franchise owners and loan originators stating that “business will continue to move forward as it does today” and owners should “continue running their business as usual.”

However, the combined company has now confirmed that franchise growth will cease, and resources will be redirected toward a unified mortgage platform. This decision may be seen as a shift in strategy, as the company prioritizes unification over growth.

Jenna Rozenblat has been named president of the new Real REMAX Group, and other recently announced leadership appointments have included Amy Somerville as COO; Ravi Jani as CFO; Pritesh Damani as CTO; Abigail Lee as CMO; Alexandra Lumpkin as chief legal officer; and Leah Jenkins as chief accounting officer.

REMAX Holdings CEO Erik Carlson will be stepping down from his role following the transaction’s close, and joining the Real REMAX board. Former REMAX president Chris Lim and former EVP of Strategy Travis Saxton announced earlier this month that they would not be moving forward with the new company.

The company’s decision to cease franchise growth for Motto Mortgage and redirect resources toward a unified mortgage platform may have significant implications for the future of the business.

They will be important to monitor.

As they handle this transition, it will be important to monitor how these changes impact the mortgage industry as a whole, considering the need for companies to adapt to changing market conditions and compensation for past actions.