Layla Zulfa
The newly formed Real REMAX Group has made the decisive strategic decision to discontinue investment in the expansion of the Motto Mortgage franchise system, a move that signifies a significant pivot in the company’s mortgage sector strategy. This announcement, confirmed by a spokesperson for Real REMAX Group on Thursday evening, comes as the integration of The Real Brokerage and RE/MAX Holdings progresses. While existing Motto Mortgage franchisees will be afforded flexibility in charting their future course, the company is redirecting its focus towards building a unified, scalable mortgage platform designed to serve a broader agent community.
This strategic realignment marks a departure from the initial assurances provided to Motto Mortgage franchisees following the landmark acquisition announcement in late April 2026. At that time, The Real Brokerage and RE/MAX had jointly stated that both RE/MAX and Motto Mortgage, recognized as the first and only national mortgage brokerage franchise brand in the United States, would continue to operate under their established brands. This commitment was further detailed in an FAQ released concurrently with the acquisition news, which explicitly reassured Motto Mortgage franchisees that their brand identity, existing agreements, and support from Motto Headquarters would remain unchanged. RE/MAX Holdings had also emphasized that the Motto Mortgage brand would be maintained and continue as a dedicated franchise model, urging owners to conduct business as usual.
However, the landscape has evolved. The spokesperson for Real REMAX Group clarified that the company will no longer engage in the sale of new Motto Mortgage franchises. This decision directly impacts the future growth trajectory of the Motto Mortgage brand as a franchisor. For current Motto franchisees, the company has outlined a path offering considerable flexibility. They will have the option to explore various avenues for their businesses, including the possibility of mutually terminating their franchise agreements. For those franchisees who opt not to terminate their agreements, Real REMAX Group has pledged its continued commitment to supporting their operations and honoring all existing contractual obligations.
The underlying rationale for this strategic shift, as articulated by the spokesperson, is a deliberate redirection of future investment. Real REMAX Group intends to concentrate its resources on developing a singular, scalable mortgage platform that is fundamentally built to support and enhance the broader agent community. This approach contrasts with the previous strategy of investing in the expansion of the distinct Motto Mortgage franchise network and its associated processing firm, wemlo. The company has confirmed that RE/MAX will continue to operate as a franchise brand following the official closure of the acquisition on Monday.
Leadership Transitions Amidst Strategic Realignment
Coinciding with this strategic pivot in the mortgage sector, Real REMAX Group has also undergone significant leadership changes. Vic Lombardo, who previously held the position of president of RE/MAX’s mortgage services, has stepped down from his role. His responsibilities have been assumed by Kate Gurevich, the CEO of Real’s mortgage operation, One Real Mortgage. This transition places Gurevich at the helm of the combined mortgage operations, leveraging her expertise from Real’s existing mortgage division.
Lombardo joined RE/MAX Holdings in August 2025 with the explicit mandate to scale Motto Mortgage and wemlo. An industry veteran with a decade of experience as a broker-owner, Lombardo brought a wealth of knowledge to his role. His prior experience includes serving as chief operating officer of Guaranteed Rate Affinity and holding various leadership positions at PHH Mortgage. He had taken over the leadership of Motto Mortgage from Ward Morrison, who was instrumental in launching the brand in 2016 and establishing its "Mortgage Brokerage In-A-Box" model.
Lombardo’s departure is part of a broader leadership reshuffling within the newly formed entity. Chris Lim, who served as president and chief growth officer of RE/MAX, also vacated his position subsequent to the acquisition’s closure. Similar to Lombardo’s transition, Lim’s role has been filled by a member of Real’s leadership team. Jenna Rozenblat, previously the chief operating officer of Real, has been appointed as the president of the Real REMAX Group. Rozenblat is also serving as the chief integration officer, overseeing the complex process of merging the two organizations. Additionally, Erik Carlson, the former CEO of RE/MAX Holdings, has stepped down from his executive role and has joined the board of directors for Real REMAX Group.
The company has characterized these leadership changes as a strategic move designed to optimize the combined entity. The spokesperson stated that the new leadership structure is intended to integrate experienced leaders from both organizations, thereby capitalizing on the complementary strengths of Real and RE/MAX. The leadership team is described as possessing extensive expertise across critical areas such as technology, marketing, finance, operations, brokerage, and franchising, positioning the company for future growth and innovation.
A Deeper Dive into the Numbers and Market Dynamics
The strategic decision to de-emphasize the growth of the Motto Mortgage franchise system is underscored by recent performance data. At the close of 2025, RE/MAX reported a total of 171 Motto Mortgage offices operating nationwide. This figure represented a notable decrease of 24% compared to the preceding year. The company’s filings revealed that during the fourth quarter of 2025, a deliberate strategic decision was made to terminate approximately 80 Motto franchisees. These terminations were primarily attributed to franchisees who were receiving significant financial assistance or were not meeting operational performance benchmarks.
In an effort to revitalize its mortgage offerings for new entrants, RE/MAX introduced a revised financial model for Motto franchises in early 2026. This new model represented a shift from a purely fixed monthly fee structure to a hybrid approach. It now comprises a fixed monthly fee of $2,500, supplemented by a variable fee calculated at 25 basis points on each closed loan. This adjustment aimed to align the franchisor’s revenue more closely with the success of its franchisees.
Regarding wemlo, the mortgage loan processing revenue was structured with a fixed processing fee of approximately $825 for each loan closed through a Motto franchise. For loans processed through external customers, wemlo charged a fixed fee of $995 for the majority of transactions. These fee structures provided a revenue stream for wemlo while offering processing services to both internal and external clients.
In contrast, One Real Mortgage, the mortgage arm of The Real Brokerage, has demonstrated consistent growth. During the second quarter of 2026, One Real Mortgage generated $1.9 million in revenue, marking a 10% increase year-over-year. On a year-to-date basis, One Real Mortgage had facilitated roughly $110.8 million in mortgages. This performance compares to $243 million in the entirety of 2025, according to data from InGenius. As of early August 2026, the company reported having 169 mortgage loan officers, with 137 of these professionals affiliated with the Real Originate program, highlighting the organic growth and integration efforts within Real’s existing mortgage operations.
Implications and Future Outlook
The decision by Real REMAX Group to cease new Motto Mortgage franchise sales and focus on a consolidated mortgage platform has several potential implications for the real estate and mortgage industries. For Motto Mortgage franchisees, the immediate future hinges on their individual business strategies and their willingness to explore mutually agreeable terminations or continue under the existing framework. The flexibility offered suggests a recognition of the varied circumstances of these franchisees.
The shift towards a "single, scalable mortgage platform centered around the broader agent community" indicates a strategic intent to leverage the combined agent networks of Real and RE/MAX more effectively. This approach could lead to enhanced cross-selling opportunities and a more integrated experience for agents seeking mortgage services for their clients. It also suggests a potential streamlining of mortgage offerings, moving away from a multi-brand franchise model to a more unified and potentially technology-driven solution.
The leadership transitions, particularly the appointment of Kate Gurevich and Jenna Rozenblat to key roles, signal a commitment to integrating the operational strengths and technological capabilities of both Real and RE/MAX. The spokesperson’s emphasis on the combined leadership team’s expertise across various domains suggests an ambitious plan for synergy and efficiency.
The market will be closely watching how Real REMAX Group executes its strategy to build this new, scalable mortgage platform. Key factors for success will include the platform’s ability to attract and retain agents, its technological innovation, its competitive pricing, and its capacity to deliver a seamless mortgage experience. The de-emphasis on Motto Mortgage franchising may also create opportunities for other mortgage brokerage franchise models or independent lenders to capture market share. The strategic pivot by Real REMAX Group represents a significant development in the ongoing evolution of the residential real estate and mortgage services landscape, reflecting a broader industry trend towards consolidation and integrated service offerings.
