Key facts
- eXp World Holdings and Kind Lending are ending their mortgage joint venture, Success Lending.
- eXp is in discussions to form a new joint venture with Newrez.
- The proposed partnership aims to leverage Newrez's origination capabilities and eXp's real estate agent network.
- Success Lending has originated approximately $270 million in mortgages year-to-date.
- Kind Lending produced $7.5 billion in mortgages in the first half of the year.
- Newrez is a larger lender, having originated $31.3 billion in the first half of the year.
eXp World Holdings and Kind Lending have mutually decided to wind down their mortgage joint venture, Success Lending. The companies confirmed the closure, with eXp expressing gratitude for the partnership and excitement for its future mortgage strategy. eXp is now exploring the potential formation of a new joint venture with Newrez.
The proposed venture aims to integrate Newrez's origination platform with eXp's extensive agent network to better serve homebuyers. This move comes as real estate brokerages and mortgage lenders have increasingly formed joint ventures to secure purchase volume and enhance integration between agents and loan officers, though companies are reevaluating these arrangements due to margin pressures and a competitive market.
Success Lending, established in 2021, has originated approximately $270 million in mortgages on a year-to-date basis. Its production in the previous year was $526.5 million, down from $658 million the year before. As of Wednesday, it had 113 sponsored loan officers across 22 active branches.
Kind Lending, founded by industry veteran Glenn Stearns, was a top-35 mortgage lender in the first half of the year, with $7.5 billion in production, an increase of nearly 50% year-over-year. Newrez, however, is a larger entity, ranking as the sixth-largest U.S. mortgage lender in the same period, producing $31.3 billion in mortgages, up 11.5% year-over-year. Newrez currently operates about 15 active joint ventures.