Luxury real estate broker The Agency enters mortgage lending

Real estate brokerage The Agency is adding mortgage lending with a new joint venture agreement.

Alongside JV partner, Arizona-based mortgage broker Barrett Financial Group, the two companies this week announced the launch of lending business Aclara Lending, which will offer over 140 loan products geared toward high-end purchases. Among the products available to The Agency's clients are jumbo, super-jumbo and non-QM mortgages, the JV's leaders said. 

"Together, we're setting a new standard for luxury home buying by providing clients with not only tailored lending solutions but also a seamless, integrated experience that supports their entire journey — from the initial search to closing the deal," said Trevor Barrett, founder and president of the namesake mortgage business, in a press release. 

With initial mortgage operations aimed at the Southern California market, Aclara hopes for greater expansion to eventually serve buyers across the U.S. Barrett Financial is currently licensed in 49 states. 

The Agency's real estate brokers should also benefit through continuous education opportunities to learn about mortgage trends and new products thanks to the agreement, the company said. 

"This partnership marks a pivotal moment in our journey, bringing together a comprehensive suite of mortgage solutions with a strong focus on agent empowerment," added Burke Smith, executive vice president of affiliated businesses at The Agency. 

Company leadership touted Aclara's ability to offer paperless loan technology, including E-signing, in the borrowing and closing process. Aclara loan originators will also be able to easily compare data from both Fannie Mae's and Freddie Mac's underwriting systems side by side to determine the best options for clients. A dedicated account executive at each Barrett lending office will be available to better assist The Agency's clients.

Founded in 2011 by CEO Mauricio Umansky in Beverly Hills, California, The Agency currently counts more than 120 offices in 12 countries within its broker network. The real estate company said it has closed more than $72 billion in transactions since its founding. 

Umansky is also known in Hollywood circles as a producer as well as the husband of Real Housewives of Beverly Hills star Kyle Richards. 

The latest JV is the latest in a list of moves over the years from real estate brokerages entering mortgage lending using various strategies. In September, Florida company Realpha added home lending to its offerings with the acquisition of mortgage broker Be My Neighbor. In late 2023, Loandepot also teamed up with Exit Realty, joining its network to offer home lending services to the agency's customers. 

In the past, real estate giants, including Zillow and Redfin, also purchased home lenders, while Remax introduced its own mortgage broker franchise network, Motto. 

In joint-venture moves similar to the The Agency/Barrett Financial agreement, Kind Lending and a Midwest Remax franchise partnered last year to form Results Home Mortgage, aimed at serving buyers in the region. In 2021, Compass and the company now known as Rate, both leading names within their respective industries, launched lending business Originpoint. 

Recent decisions between businesses in real estate and mortgage to work together come amid a prolonged stretch of sluggish home sales, arising from a challenging interest-rate environment and record-high prices. While declining mortgage rates are leading to optimism for a rebound in home sales, several researchers have cautioned the market may not return as quickly as hoped. 

This week Redfin reported that the share of homes sold in the first eight months this year relative to the total number of U.S. properties was the smallest in several decades at 2.5%. Researchers cited homeowner reluctance to give up favorable mortgage rates they held as a leading cause for the slow housing turnover.