Redfin Vertically Integrates with Bay Equity Home Loans Purchase

Redfin announced today it completed its purchase of Bay Equity Home Loans for $137.8 million in cash, allowing the online real estate company to offer its homebuyers access to a full-service mortgage lending operation and making it a one-stop shop for consumers to finance a home purchase.

Starting today, Redfin says, its real estate agents will be able to link their prospective homebuyers to a local Bay Equity loan officer in 91 markets.

“As homebuyers struggle with affordability and bidding wars, it’s more important than ever for lenders and brokers to work together on every customer’s offer,” Redfin CEO Glenn Kelman said.

Bay Equity Home Loans will continue to operate under its own name, Redfin says. It will also continue to be headquartered in Corte Madera, Calif. Redfin is headquartered in Seattle.

“Our first priority is connecting Redfin’s approximately 2,400 lead agents to our 400 loan officers, so we can help Redfin’s customers win in this competitive real estate market,” Bay Equity CEO Brett McGovern said. “Being part of Redfin will help us meet customers more efficiently, which means we can give Redfin homebuyers competitive rates while delivering a seamless experience from pre-approval to close.”

Redfin is buying Bay Equity for $137.8 million, which it says is a $72.5 million premium over Bay Equity’s book value.