The merged entity, dubbed Guaranteed Rate Affinity, is expected to begin doing business in June. However, the deal is contingent upon the closing of an asset purchase agreement under which Guaranteed Rate Affinity will acquire certain assets of the mortgage operations of PHH Home Loans.
The deal is also contingent upon Realogy and PHH Mortgage mutually agreeing to exit their previously announced existing joint venture relationship.
Provided the deal goes through as planned, Guaranteed Rate Affinity will originate and market its mortgage lending services to Realogy’s real estate brokerage and relocation subsidiaries, respectively NRT and Cartus, as well as to other real estate brokerage and relocation companies across the country.
Guaranteed Rate Affinity also will market its mortgage lending services to a broad consumer audience, while leveraging its end-to-end online platform to drive growth in those markets.
Guaranteed Rate will own a controlling 50.1% stake of Guaranteed Rate Affinity, and Realogy will own 49.9%.