Lenders One, a home lending cooperative managed by a subsidiary of Altisource Portfolio Solutions, has officially launched its first mortgage branch in a Walmart location, following through with a pilot program established earlier this year.
The first branch is located in Newton, New Jersey. Family First Funding LLC, a multistate retail lender based in Toms River, New Jersey, operates it. Family First also plans to open a branch in Orlando, Florida within the next 30 days. In addition, MLB Residential Lending in Springfield, New Jersey, plans to launch a branch within a similar time frame, which will be located in Boonton, New Jersey. Other mortgage branches are on track to open later in parts of California, Ohio, South Carolina and Texas.
The Lenders One pilot with Walmart got underway in March before another big box store, Costco, decided to discontinue
The mortgage industry has experimented with various partnerships involving retail and
Lenders One's Walmart plan is part of a larger initiative to help members diversify their geographic footprint by reaching more potential customers in areas with retail foot traffic.
The time may be ripe for such strategies. With the pandemic receding, consumers are shopping in person more frequently. Rates are rising, reducing refinancing incentives that lead to repeat lending business and lender margins are shrinking, all of which could make partnerships that expand outreach with minimal investment in staffing or brick and mortar locations attractive.
