RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Layoffs and Acquisitions on the Horizon for Redfin

Home Agents
By Jordan Grice
January 13, 2022
Reading Time: 2 mins read
Layoffs and Acquisitions on the Horizon for Redfin

Redfin is reshaping its mortgage business in 2022.

The Seattle-based company announced on Jan. 11, that it has agreed to acquire Bay Equity Home Loans, a national, full-service mortgage lender, in a cash and stock transaction worth $135 million.

According to a press release and public filing, the deal, which is expected to close in the second quarter of 2022, will help increase Redfin’s financing capabilities nationally.

“For years, Redfin has talked about becoming a one-stop-shop for brokerage, mortgage, iBuying and title services,” said Redfin CEO  in a statement. “Just having one company offer all these services is more efficient, letting us keep customers’ lending fees low.”

Redfin also indicated that it is laying off 121 employees in its mortgage business in preparation for the acquisition.

The workforce reduction is projected to account for approximately $7 million in costs and transaction advisory fees of about $3.5 million.

For employees who are out of a job, Redfin stated that there would be re-employment opportunities within other arms of the company or 12 weeks and 26 weeks of severance, depending on tenure.

There are no plans to reduce Bay Equity staff, according to Redfin.

Redfin said that Bay Equity’s footprint makes it more efficient at producing and selling loans to investors. The company hopes to increase profits while maintaining lower rates by absorbing the Corte Madera-based lender.

“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.

Bay Equity is a licensed mortgage lender in 42 states and employs approximately 1,200 people, making it nearly ten times the size of Redfin’s mortgage business.

According to Redfin, the merger will help its lending arm match its brokerage, which employs roughly 2,400 agents.

“This is a formidable combination,” said Bay Equity CEO Brett McGovern, adding that the merger will position the lending company to thrive in a changing mortgage market.

“In addition to our established book of business, we will benefit from the customers generated by Redfin’s more than $25 billion in real estate transactions each year,” McGovern added.

After the deal closes, the Bay Equity management team will continue to operate under the Bay Equity name. Some Redfin Mortgage employees will move to Bay Equity, including Redfin’s loan officers.

Jordan Grice is RISMedia’s associate online editor. Email him your real estate news ideas to jgrice@rismedia.com.

Tags: Bay Equity Home LoanslayoffsRedfin
ShareTweetShare

Jordan Grice

Jordan Grice is RISMedia’s senior editor. Email him your real estate news to jgrice@rismedia.com.

Related Posts

Homebuilder Confidence Falls for 8th Straight Month
Agents

Homebuilder Confidence Falls for 8th Straight Month

August 16, 2022
Housing Starts Fall to Lowest Level in Over a Year
Agents

Housing Starts Fall to Lowest Level in Over a Year

August 16, 2022
The Hottest Zip Codes of 2022 Are in Small New England Cities
Agents

The Hottest Zip Codes of 2022 Are in Small New England Cities

August 16, 2022
Forbes Global Properties Names Michael Jalbert CEO
Agents

Forbes Global Properties Names Michael Jalbert CEO

August 16, 2022
Compass Eliminates Financial Perks, Recruiting Tactics After Tallying Higher Losses in Q2
Agents

Compass Eliminates Financial Perks, Recruiting Tactics After Tallying Higher Losses in Q2

August 16, 2022
Thriving in a Recession: Best Practices for Real Estate Team Leaders
Agents

Thriving in a Recession: Best Practices for Real Estate Team Leaders

August 16, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Keep Up With What Today’s Buyers Want

Today’s buyers want move-in ready but over 80% of homes in the U.S. are 20 years or older making pre-listing... Learn more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Homebuilder Confidence Falls for 8th Straight Month
  • Housing Starts Fall to Lowest Level in Over a Year
  • The Hottest Zip Codes of 2022 Are in Small New England Cities

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X