Seattle-based Redfin recently completed its purchase of Bay Equity Home Loans for $137.8 million in cash.
The move fuels Redfin’s plan to become a one-stop shop to buy, sell, rent or finance a home, according to a news release announcing the deal.
“As homebuyers struggle with affordability and bidding wars, it’s more important than ever for lenders and brokers to work together on every customer’s offer,” Redfin CEO Glenn Kelman said in the news release. “In dozens of markets, Bay Equity and Redfin field organizations have already met, and the difference in our agents’ enthusiasm about recommending a Redfin mortgage to their customers is night and day: because Bay Equity has hundreds rather than dozens of loan officers, because Bay Equity supports every type of loan, because Bay Equity was already one of Redfin customers’ top-rated lenders.”
The deal will unite Redfin’s 2,400 agents with Bay Equity’s 400 loan officers. Agents and loan officers are partnered based on geography and will connect through Redfin’s software, the news release said.
“Being a part of Redfin will help us meet customers more efficiently, which means we can give Redfin homebuyers competitive rates while delivering a seamless experience from pre-approval to close,” Bay Equity CEO Brett McGovern said in the news release. “We don’t expect Redfin’s agents to recommend us to customers because we’re part of the same company, but because of the value and service we deliver. Aligning with Redfin recognizes our 14 years of strategic growth nationwide and puts us on a trajectory to become a top 10 lender.”
Bay Equity will continue to operate under its own name and current leaders. Redfin will close its Redfin Mortgage business and integrate lending operations under Bay Equity. Fifty-two Redfin Mortgage employees will shift to Bay Equity, which will maintain its headquarters in Corte Madera, California.