This seems like an obvious play – after many years of operating a joint venture with Wells Fargo, HomeServices of America is making HomeServices Lending a wholly-owned subsidiary. HomeServices Lending operates in over a dozen states and as Edina Realty Mortgage in Minnesota and Wisconsin.
I think this is a great move by a company that’s been on an aggressive growth strategy recently. Kudos for taking the next step!
FOR IMMEDIATE RELEASE
Kreps DeMaria PR (for HomeServices of America)
HomeServices Lending Announces Plans to Become Wholly-Owned Subsidiary of HomeServices of America
MINNEAPOLIS, Minn. (July 25, 2013) – HomeServices Lending LLC, a joint venture with Wells Fargo, today announced plans to transition to become a wholly-owned subsidiary of HomeServices of America, a Berkshire Hathaway affiliate. The transition work has been underway for some time, and is expected to conclude in 2014.
“HomeServices is a world-class company with an expansive and aggressive growth strategy,” said Todd Johnson, president of HomeServices Lending. “Wells Fargo has been a great partner for many years, and we look forward to working together in the future, but we felt that a wholly-owned model better fits our long-term strategy.”
The change in ownership structure does not impact HomeServices Lending’s current operations or organization. HomeServices Lending home mortgage consultants, along with their extensive staff of processors, closers and underwriters will continue their long-standing mission of serving customers with mortgage financing as they do today. The decision to move to a wholly-owned subsidiary strategically aligns with HomeServices of America’s growth strategy, and supports its business model of providing buyers and sellers with fully integrated home ownership services.
“This represents an important event in the continued growth of HomeServices,” said Ron Peltier, chairman and CEO of HomeServices of America. “Our mission is to provide an exceptional customer experience throughout the home transaction process. Owning and operating the lending portion of our business provides us with tremendous flexibility as we continue to build HomeServices into a global organization.”