In a bid to expand its reach to even more home buyers, mortgage lender Lower has inked a new agreement with real estate brokerage HomeSmart.
This comes just months after Lower acquired Movoto, a real estate portal similar to, but much smaller than the likes of Zillow.
The two power moves might be enough to launch the Ohio-based lender into the top-25 nationally.
As it stands, they’re a top-50 lender, but they’re clearly taking steps to get a lot bigger.
And if it all works out, they could be a household name in the mortgage world before you know it.
Lower’s New Collab with HomeSmart Gives Them Access to 25,000 Real Estate Agents Nationwide
It’s been an interesting year for mortgage and real estate mashups.
We’ve seen some pretty massive ones, not least of which Rocket’s acquisition of Redfin.
Shortly after that took place, they snatched up mortgage loan servicer Mr. Cooper as well.
They referred to it as a flywheel, where they essentially keep the customer for life from origination to servicing.
It seems Lower took a page from Rocket’s playbook as they’ve been making similar moves lately as well.
In May, Lower acquired Movoto, which while less well-known, is apparently the 5th largest real estate portal in the United States with 150 million visits in 2024 alone.
If you go to that site, there’s now a little disclaimer on the bottom that reads, “Requests for information regarding mortgage products will be directed to Movoto.com affiliate, Lower, LLC.”
But like Rocket, Lower wasn’t satisfied yet, and today, announced another big link-up with the nation’s largest 100% commission real estate brokerage HomeSmart.
For the uninitiated, 100% commission brokerages give the full commission to their real estate agents instead of taking a split.
However, the agents still have to pay a monthly fee, a flat transaction fee, and a standard risk reduction fee.
Anyway, the main point is Lower will now have direct access to “HomeSmart’s expansive network of agents,” which totals about 25,000 at last glance across 250 offices in 48 states.
So it’s yet another way for Lower to drum up business if a HomeSmart agent happens to use their new preferred lender.
Strategic Marketing Agreement Will Increase Mortgage Lending at Lower
The new partnership isn’t a merger or acquisition, but rather a “strategic national marketing agreement.”
What that means is HomeSmart’s 25,000 real estate agents will get direct access to Lower’s mortgage solutions, which they say will create “a seamless experience for agents, buyers, and homeowners nationwide.”
Specifically, Lower and HomeSmart will roll out a joint marketing campaign that highlights their combined platforms.
Other than co-branded marketing resources, HomeSmart agents will receive specialized training and tools to close home loans faster.
Ultimately though, it’s just a way for Lower to tap into another large pool of prospective home buyers before another lender does.
Since mortgage rates jumped back in 2022, mortgage refinancing has dried up and lenders have increasingly worked to make inroads with real estate agents.
As we all know, or you should know, most home buyers go with the mortgage company recommended to them by their real estate agent.
This is why all these mortgage lenders and real estate companies are pairing up. They know it’s often a race to the customer, and simply being first wins that race most of the time.
If you’re a prospective home buyer, pay close attention to your real estate agent’s lender recommendation.
Do a quick search to see if there’s an affiliation, and if you’ve got the energy, get some outside quotes to compare to the affiliated lender.
If you don’t take the time to do so, you won’t know what else is out there. And studies prove that those who obtain more than one mortgage rate quote save money, potentially a lot of it.
Read on: Should I use the home builder’s mortgage lender?
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.