A company that originates in the range of $1 billion annually is being acquired by Zillow Group Inc. The deal is expected to create opportunities with real estate brokers.
On Monday, the Seattle-based organization announced that it has reached a definitive agreement to acquire Mortgage Lenders of America LLC.
Overland Park, Kansas-based Mortgage Lenders of America says it employs more than 300 “loan professionals.” It reportedly has funded 30,000 loans since its founding in 2000.
Last year, the home lender reports that its closed 4,400 transactions. Based on the average mortgage of roughly $225,000 in last week’s U.S. Mortgage Market Index report, dollar volume for last year’s production is estimated at $990 million.
With the acquisition, Zillow will be able to streamline and shorten the home-buying process for prospects who use its Zillow Offers to purchase a home.
It will also create partnership opportunities with real estate brokers who have existing in-house mortgage operations or mortgage affiliates.
Mortgage Lenders of America, which ranked as one of LendingTree’s top home lender in 2013, will continue to originate loans. It will also continue to participate in Zillow’s mortgage marketplace — which generated $38 million in revenues during the first half of this year from all lenders.
Mortgage Lenders of America President Philip Kneibert will continue to lead the company as general manager after the transaction closes. He’ll report to Greg Schwartz, president of media and marketplace at Zillow.
Terms of the transaction, which is subject to the satisfaction of customary closing conditions, including mortgage regulatory approvals, were not disclosed. Zillow said it expects to close the deal in the fourth quarter,