Seemingly taking a page from the Compass handbook to become a true one-stop shop for all things real estate, Redfin has announced plans to buy Bay Equity Home Loans. A company release notes that Redfin has reached a sales agreement in the amount of $135 million in cash and stock.
Founded in 2007 in the Bay Area, Bay Equity is a licensed mortgage lender in 42 states and employs some 1,200 people. Redfin says the acquisition accelerates it’s company strategy to brokerage, lending and other services together under the Redfin brand.
“With Bay Equity’s geographic presence and full product suite, we’ll be able to offer mortgages to a larger share of Redfin’s home-buying customers right away, including jumbo loans and loans for veterans and folks with lower credit scores,” said Adam Wiener, Redfin’s president of real estate operations. “Perhaps most important of all, Bay Equity shares Redfin’s commitment to customer service. Our customers and agents have worked with Bay Equity to finance hundreds of purchases and the customer ratings are top-notch.”
The release notes that the acquisition will help Redfin increase the number of brokerage customers whose homes Redfin can finance. By using Bay Equity’s loan-origination system, Redfin will be able to reduce its 2022 investment in lending software.
The Bay Equity management team will continue to operate under the Bay Equity name, originating mortgages for customers working with Redfin agents, customers working with other brokerages and customers seeking refinances. All Redfin Mortgage lending operations will be consolidated under Bay Equity, with some Redfin Mortgage employees formally moving under the Bay Equity title.
Redfin also announced it will eliminate 121 Redfin Mortgage roles, representing less than 2 percent of Redfin’s total staff, primarily in sales support and operations.
The acquisition is expected to close in the second quarter of 2022.