Zillow Group today launched a Home Loans division, establishing another pillar of the company’s new identity of directly buying and selling homes.
Zillow has been quietly originating mortgages for a few months, following the acquisition of Mortgage Lenders of America last year, but the company plans to double down with the Home Loans division. The new rebranded mortgage division will complement Zillow Offers, the company’s direct home sales operation, with a goal of streamlining and simplifying the process of buying a house. Zillow Home Loans is also a standalone business, so a customer doesn’t need to use Zillow Offers to get financing.
GeekWire previously reported on Zillow’s mortgage ambitions, just days after the announcement of a surprising shift that included co-founder Rich Barton’s return as CEO, and Zillow’s declaration that it will go all-in on direct home sales. The company aims to originate 3,000 mortgages a month within three to five years, including loans on approximately a third of all Zillow Offers transactions.
Mortgage Lenders of America originated approximately 4,000 home loans in 2018 across 40 states, or roughly 333 per month. That’s about one-tenth the number of mortgages Zillow Home Loans plans to originate within the next few years.
At the time of the deal, Zillow didn’t say how much it spent to purchase Mortgage Lenders of America. But the company’s annual 10-K filing with the U.S. Securities and Exchange Commission revealed the price: $66.7 million in cash. Read more