Just days after completing its $880 million acquisition of REMAX, the newly coined Real REMAX Group has decided it will no longer sell new Motto Mortgage franchises, instead choosing to prioritize investment in a unified mortgage platform.
Additionally, also following the deal closing, Vic Lombardo, who was named president of REMAX’s mortgage services last year, has stepped down. Kate Gurevich, the CEO of Real’s mortgage operation, One Real Mortgage, has taken over that position. This is another high-level executive moving on, following several other departures.
A Real REMAX Group spokesperson emailed RISMedia the following comments:
“Real REMAX Group has made the strategic decision to no longer invest in growing the Motto Mortgage franchise system, and it will no longer offer the sale of new franchises. Existing Motto franchisees will have flexibility in determining what comes next for their businesses, including the opportunity to mutually terminate their franchise agreements. For owners who choose not to mutually terminate, Real REMAX Group remains committed to supporting franchise owners and honoring the obligations under existing franchise agreements.”
The changes run counter in some ways to what the leaders of Real and REMAX told RISMedia Founder and CEO John Featherston during an Industry Briefing in late May, shortly after the deal was announced.
“What happens in the future is probably a great question for after we close,” said RE/MAX Holdings CEO Erik Carlson, who recently announced his plans to step down and transition to the Real REMAX board. “Tamir (Poleg, Real CEO) has definitely talked about his understanding of the (REMAX) brand from a young age, and I don’t think he has plans to change it right now.”
“I’ve known the REMAX brand since I was a kid,” said Poleg. “Why would we ever want to change anything? We want to enhance the brand. We want to grow it. We want to take it into the future. This is for me an eternal brand, and I’m just humbled to be associated with it.”
Despite that sentiment, Poleg and Carlson acknowledged broker and agent uncertainty about what the future holds.
“We’re two public companies and we’ve announced a transaction and there are a lot of questions that Tamir and myself actually have some answers for, however, can’t really talk about them until post-close,” said Carlson. “And I know that from both the Real and the REMAX agent and brokerage side, there is some frustration with that uncertainty. Just know that Tamir and I are both committed to talking as transparently as we can during this regulatory process until we get the deal closed.”
This is a developing story that will be updated as more information becomes available.
