Real REMAX Group is ending sales of new Motto Mortgage franchises just days after completing its merger, leaving existing owners to remain in a shrinking network or negotiate an exit.
The company has made a “strategic decision to no longer invest in growing the Motto Mortgage franchise system” and will instead direct future investment toward a unified mortgage platform serving its broader real estate agent network, a spokesperson told National Mortgage Professional.
“Existing Motto franchisees will have flexibility in determining what comes next for their businesses, including the opportunity to mutually terminate their franchise agreements,” the spokesperson said. Owners who remain will continue receiving support under their existing contracts.
Because the terminations must be mutual, franchisees do not appear to have an unconditional right to leave. Real REMAX has not disclosed whether it will forgive outstanding amounts, release owners from future fees, or impose other conditions on an exit.
It also has not explained how mortgage opportunities generated by REMAX agents will be allocated between independently owned Motto offices and its planned unified platform.
A Change From April’s Message
The decision comes only months after RE/MAX told Motto franchise owners and loan originators that the brand would continue operating as a dedicated franchise model following its combination with The Real Brokerage.
In April communications filed with the Securities and Exchange Commission, RE/MAX said Motto agreements would remain in place, headquarters support would remain unchanged, and wemlo processing services would continue.
“The Motto Mortgage brand remains intact,” the company said at the time. “Even after the transaction closes, the Motto Mortgage brand will be maintained and continue to operate as a dedicated franchise model.”
Real REMAX is not eliminating the brand or terminating every franchise. But its decision to stop selling franchises means Motto will no longer be treated as a growth platform.
The change came almost immediately after Real completed its acquisition of RE/MAX Holdings on Aug. 24. The approximately $880 million transaction created a company serving more than 180,000 real estate professionals across more than 120 countries and territories.
NMP previously reported that the merger would bring One Real Mortgage, Motto, wemlo, title services, and more than 1 million annual consumer leads under one corporate umbrella.
Real Inherits A Shrinking Network
RE/MAX reported 149 open Motto offices as of June 30, down 32% from 219 a year earlier. Motto sold no franchises during the first six months of 2026, compared with five during the same period in 2025.
RE/MAX also terminated approximately 22 franchisees during the first half because they were receiving significant financial relief or otherwise were not performing operationally. That followed the termination of approximately 80 franchisees during the fourth quarter of 2025 for similar reasons.
Fifteen offices were still receiving short-term assistance as of June 30, down from 59 a year earlier.
The contraction cut into the economics of RE/MAX’s mortgage segment, which included Motto and wemlo. Second-quarter revenue fell 20% to $2.9 million, while its adjusted EBITDA loss widened to $1.85 million from $1.52 million.
For the first half, mortgage revenue declined 16% to $5.7 million, and the adjusted EBITDA loss widened to $3.53 million from $3.18 million, according to RE/MAX’s second-quarter filing.
RE/MAX had attempted to improve Motto’s economics earlier this year by introducing a fee structure for new franchises consisting of $2,500 per month plus 25 basis points per closed loan. The previous model eventually reached a fixed monthly fee of $4,650.
With no first-half franchise sales, Real REMAX is abandoning expansion before the production-based structure had much opportunity to gain traction.
One Real Mortgage Gains Originators
The strategic shift is accompanied by a leadership change.
Vic Lombardo stepped down as president of mortgage services following the merger. He had joined RE/MAX only a year earlier to lead Motto and wemlo.
Kate Gurevich, CEO of One Real Mortgage, has assumed leadership of the combined company’s mortgage services.
One Real Mortgage was moving in the opposite direction from Motto before the merger. Its second-quarter revenue increased 10% to $1.88 million, and it reported operating income of $374,000, compared with a $683,000 loss a year earlier.
The improvement partly reflected a reversal of stock-based compensation forfeited by former employees. On an adjusted basis, the operation remained slightly below break-even.
Real attributed the revenue growth to additional productive originators and an inside-sales team that supported higher funded-loan volume.
One Real Mortgage had 169 mortgage loan originators in early August, including 137 affiliated with Real Originate, up from 119 originators in February. Real Originate allows qualified Real real estate agents to become licensed originators and offer mortgage services through One Real Mortgage.
The company also offers recruiting, coaching, and stock incentives to its originators.
Where Do Motto Owners Fit?
The two operations represent different mortgage-distribution models.
Motto provides independently owned brokerages with branding, technology, compliance assistance, and processing support in exchange for franchise and related fees. One Real Mortgage recruits originators into a centrally managed brokerage and connects them directly with Real’s real estate agent network.
Real REMAX has not formally identified One Real Mortgage as its unified platform. But Gurevich remains publicly identified as its CEO, while the combined company has not named a separate leader for Motto or wemlo following Lombardo’s departure.
The company also has not said whether REMAX agents will be eligible to participate in Real Originate or whether One Real Mortgage will operate in markets served by existing Motto franchises.
For Motto owners, the brand and their agreements remain. The growth investment does not. What remains unanswered is how those independently owned brokerages will fit into a centralized mortgage strategy built around the same agents and borrowers.
