Following in the footsteps of several other big Twin Cities real estate brokerages, Eden Prairie-based Re/Max Results now has its own mortgage company: Results Mortgage, which has offices in Rochester, Edina, Apple Valley and Eden Prairie.
The company recently closed its first loan and has many pre-approvals and loan applications in process. Though Results Mortgage is affiliated with a specific real estate brokerage, the company said it will work with anyone.
Re/Max Results teamed up with Stearns Lending on the venture.
"The goal of Results Mortgage is to ensure that we can get closer to the consumer and provide services that aid them in every step of the real estate process," John Collopy, broker/owner of Re/Max Results, said in a statement.
The president of Results Mortgage is Michael Cass. He has been in the mortgage industry in the Twin Cities for more than two decades.
"Results Mortgage will offer borrowers a comprehensive selection of competitive mortgage programs, including FHA, VA, conventional and jumbo loans," he said.
Re/Max Results already has an affiliated title company called Home Title, which provides full-service closing and title insurance company.
Such affiliations aren't unusual for Twin Cities real estate brokerages, which tout the benefits of offering a full range of services related to the buying and selling process.
Brian Call of Rubicon Home Mortgage and president of the Minnesota Mortgage Association said Collopy's decision to get into the mortgage business could be the beginning of a broader trend. He said other companies are exploring either opening mortgage companies or partnering with mortgage companies.
"Considering the landscape of recently passed mortgage lending regulations, I believe that those considering opening a mortgage company are taking more time to fully understand consumer protection requirements of such an engagement," Call said. "Personally, I do expect to see more of these to appear in the short-to-intermediate term and Re/Max is one of the first to publicly announce their arrangement."
The mortgage industry has been an unintended beneficiary of the Brexit vote. Shaken by the United Kingdom's vote to exit the European Union, investors have sought safety and security in 10-year Treasury bonds, which tend to track closely with long-term fixed-rate mortgages.
With bond prices on the rise and yields falling, mortgage rates have followed suit. The average 30-year mortgage rate across the U.S. last week flirted with record lows, fueling mortgage refinancings and home purchases. Call said that mortgage locks in the pipeline have increased 83 percent over the past month and that the Mortgage Bankers of America refinance index last week had increased 21 percent from the previous week and is at the highest level since January 2015.
Jim Buchta
