If you are planning on starting a family and looking around for a new home or an apartment, the first option to consider is getting a mortgage. Finding a mortgage is daunting, and the lender list is vast. This is where Motto Mortgage comes in, which is not just a real estate service provider but houses many mortgage brokers as well.

In this Motto Mortgage review, we talk about what Motto Mortgage is, a little bit of motto mortgage employee reviews, and if you want to set up your mortgage brokerage.

What is Motto Mortgage?

When you hear the name Motto Mortgage, the first thing that comes to mind is they are a brokerage or a lender. That is not so, so let us explain in this Motto Mortgage review. They provide a technology solution to a group of brokers that can easily manage a stream of insurance and mortgage companies, giving their customers the best service.

Following is a process flow timeline breakdown of the Motto Mortgage franchise and technology solution for this Motto Mortgage review.

1. The broker group or team discusses a plan with Motto Mortgage until they are sold the franchise and utilize Motto Mortgage’s resources.
2. The brokers and agents attend training sessions to learn from Motto Mortgage’s trainers on utilizing the solution, plus best practices to earn more business.
3. The franchise will then obtain a License that they can work using Motto Mortgage’s name.
4. Finally, the team or brokers/agents will open the franchise.
5. The franchisee will start earning profit and pay royalty fees to Motto Mortgage.

Is Opening a Motto Mortgage Franchise a Good Opportunity?

If you are working for a company and aren't getting anywhere but want to group and jump into the world of the mortgage industry, then yes, it is an excellent opportunity. We will discuss the motto mortgage franchise review later in the section, plus some motto mortgage employee reviews to see how well they fare.

But as a working and integrated Motto Mortgage franchise, you get the ability to learn not just from the best but also become part of a well-streamlined mortgage professional system and portal. It will also include client sharing to support and grow newly acquired franchises.

Coming to the cost, the typical cost of a Motto Mortgage franchise ranges between $52,800-$74,000 based on your location or the number of members who want to hold an individual license. The license starts at $25,000 and doesn't change much as it is a typical fixed cost.

The other fixed cost is the Royalty Fee, which you, as a franchisor, have to pay each month for about $4,500. If you want to use their brand name to advertise your brokers or franchise, you need to pay only $300 monthly. So, you have to consider your budget, too!

Pros and Cons of Motto Mortgage

Let’s now have a look at some pros and cons!

Pros

• Brand Recognition – Motto as a brand has been growing incrementally, which can help attract many insurance and loan companies.
• Multiple Lender Portfolio – You will not be tied to specific loan providers and can easily acquire and access an extensive portfolio. However, Motto Mortgage will share successful lenders to kickstart a franchise.
• Faster Clear-to-Close Times – They claim the closing time to be 11 days, much faster than the industry, which takes an average of 47 days.
• Plethora or Home Loans – The company supports you as a new franchise, allowing you to access their massive and successful loan list. The list ranges from government-backed to conventional and hybrid loans.
• Proven Techniques and Technology – The company and technology solution have worked hard over the years to smoothen out the initial issues faced. With experience and dedication, the franchises and brokers are seeing good results.

Cons

• Limited States – You don’t have access to a franchise outside their eligible states list.
• Limited Online Cost Info – You have to consult with their representatives to understand and know the detailed costs of running a franchise. The veiled cost may be a significant discouragement initially for some agents.
• Limited Reviews – It is still growing, so it doesn’t have many online customer, employee, or expert reviews.
• Limited Control and Flexibility – There are still rules and protocols that a franchise has to follow, but Motto Mortgage provides limited to no flexibility.

Motto Mortgage Offices Growth

The new franchise rate has lowered in 2023 as it opened only 10 franchises this year, whereas last year it was 17, making it a total of 44 offices countrywide. The primary reasons for this decline have been attributed to interest rate increases. But the last quarter of 2023 shows promise for 2024 as policies from Biden's administration lower the interest rates.

So, considering a $700,000 net loss from closing franchises, plus a real estate agency seeing a significant decline to the economic slog worldwide, Steve Joyce, the CEO, is still hopeful for continued growth.

As per Morrison, he asserts, "We attribute the expansion, achievement, and enduring potential of our mortgage enterprise to the distinctive and captivating value propositions presented by both Motto and Wemlo. Additional services, such as mortgages, furnish real estate entrepreneurs with appealing prospects to broaden their income and profits—a particularly vital factor in the face of fluctuating market conditions."

Final Words for Motto Mortgage Review

Combining your forces with a more prominent brand name is always a good idea to utilize their expansive resources to gather as many clients and customers as possible. This is more true for the real estate and mortgage industry, especially when the overall scenario declines. In this aspect, Motto Mortgage has provided many brokers and agents to buy a franchise and grow with them.

But when it comes to flexibility and costs, it is not easy for individuals to rack up that much, which hardly seems much but can stack. Furthermore, opening a franchise does require a big investment initially, which is quite easily possible for a group of agents who have saved enough to pay quickly for the franchise.