RE/MAX’s Motto Mortgage Re-Upping Early Adopters

motto mortgage 1024x576

motto mortgage 1024x576

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It’s been more than 7 years since RE/MAX launched Motto Mortgage in 2016, and now the franchise agreements with early adopters are up for renewal. Motto Franchising LLC, striving towards RE/MAX’s goal of expanding its national mortgage brokerage franchise brand to 1,000 offices, recently celebrated the decision of two original Motto franchise owners to renew their licenses.

Franchisees sign direct 7-year agreements with Motto Franchising, without regional franchise rights. Dustin Oldfather, the founder of Motto Mortgage Prosperity, highlights that most new business for Motto Franchising comes from real estate brokerages and teams not affiliated with RE/MAX. On the other hand, Mark Scuderi, broker-owner of Motto Mortgage Supreme and RE/MAX Supreme, represents where Motto Franchising typically finds its franchisees – real estate brokerages associated with RE/MAX.

While Motto Franchising provides a platform for mortgage brokers to assist homebuyers in seeking financing from wholesale lenders like UWM, it doesn’t provide loans. RE/MAX also offers loan processing services to mortgage brokers through its subsidiary, wemlo, which was acquired in 2020.

In 2023, Motto Franchising sold 27 franchise licenses, bringing the total number of open offices to 246. Despite some offices facing financial challenges due to rising mortgage rates, the average fee revenue generated per office for RE/MAX has been increasing steadily over the years.

Both RE/MAX and Motto operate solely through franchising and generate revenue through various sources like monthly fees, franchise sales, renewals, and loan processing fees. New Motto offices have relief from monthly fees for the first six months, with escalating fees reaching a maximum of $4,650 a month after 13 months.

Mortgage franchisees under Motto are predominantly real estate brokers, with the franchise model offering an opportunity to establish independent mortgage brokerage firms. The majority of Motto franchise sales have historically been to real estate brokerages interested in mortgage lending, with a growing interest from other investors and loan originators.

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RE/MAX’s Motto Mortgage franchise is celebrating the renewal of agreements with original franchise owners as they reach the 7-year mark. Motto Franchising is focused on growing its national mortgage brokerage brand to 1,000 offices and has seen success in attracting franchisees from real estate brokerages not affiliated with RE/MAX. Franchise owners like Dustin Oldfather and Mark Scuderi have found success with Motto Mortgage, which offers technology, compliance, training, and marketing solutions for mortgage brokers. While the franchise agreement renewal process is underway, Motto has sold 27 new licenses in 2023, bringing the total number of open offices to 246. Despite challenges related to rising mortgage rates, Motto franchisees have seen an increase in average monthly revenue per office. The franchise model provides opportunities for real estate brokerages, mortgage professionals, and independent investors interested in financial services. Most Motto franchise sales have been to real estate brokerages looking to expand into mortgage lending, with a focus on providing a seamless homebuying experience for clients. The franchise generates revenue through fixed monthly fees, franchise sales and renewals, and loan processing. As the franchise model continues to evolve, Motto Mortgage is paving the way for innovative business opportunities in the real estate and mortgage industries.

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