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Zillow agrees to buy MLoA
Posted on Tuesday, 07 August 2018 14:31
Real estate firm Zillow will soon be able to offer mortgage services as it is buying Mortgage Lenders of America (MLoA) for an undisclosed sum.
Subject to customary closing conditions, the transaction is expected to complete during the fourth quarter of 2018.
Once under ownership, Philip Kneibert will remain as general manager of MLoA and report to Greg Schwartz, president of media and marketplace for the buyer.
A deal will enable Zillow to employ its strategy of providing a streamlined service that shortens the property-buying process for clients.
The buyer will be able to offer a full suite of tools from mortgage lending to finding real estate for customers, while also creating new partnerships with brokers and other affiliates in the industry.
MLoA is an already established advertising client of the investor, overseeing 4,400 loans on Zillow’s platform in 2017.
Combined with the buyer’s other products, connect and custom quotes, which received 23.00 million loan requests last year, it creates a wealth of opportunity for independent lenders to advertise and build their companies.
Zillow’s shares are currently up 42.0 per cent since the start of the year, this comes despite its new home business having a disappointing second quarter as the unit failed to generate any revenue.
Headquartered in Kansas, MLoA employs over 300 staff that fund over 30,000 loans across the US.
It specialises in mortgage selection and consultation, catering to either first time-buyers or veteran property-owners.
Based in Seattle, Washington, Zillow claims to have the largest online portfolio of real estate brands, focusing on every aspect of the home lifecycle, including rental, buying and financing.
Through its marketing software and technological services, it enables real estate professionals to access millions of clients regarding property opportunities.
In the second quarter of 2018, Zillow achieved a 22.0 per cent in revenue increase year-over-year to USD 230.90 million.
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