Tech platform Realpha acquires second mortgage brokerage

Following a similar transaction last fall, real estate technology platform Realpha Tech Corp. is expanding in home lending through the acquisition of another mortgage brokerage. 

The Dublin, Ohio-based company will purchase GTG Financial, a move that will grow its home lending presence to 28 states, including the latter's California home base. GTG was founded in 2017 and is currently licensed in seven states. Company co-founder and CEO Glenn Groves will continue to lead the new unit's operations, which will maintain its GTG branding, while capitalizing on Realpha's artificial intelligence capabilities. 

"I believe that Realpha's AI-driven platform is redefining real estate by simplifying and eliminating traditional barriers in the home buying process. We're proud to be part of this transformation and committed to driving its long-term success," Groves said in a press release.

Realpha made its first entry into mortgage lending last fall with the acquisition of Texas broker Debt Does Deals, which operates under the name Be My Neighbor. With the new deal, GTG will be officially powered by Be My Neighbor, Groves said. 

The latest transaction marks another move in Realpha's ambitions to fully automate home buying from purchase to loan closing. The real estate platform claims its property-sales strategy helps buyers save money by avoiding Realtor and agent commissions, while regularly touting how advanced technology could bring about seamless end-to-end Amazon-style transactions. 

Within its real estate sales division, the company introduced a generative AI tool last year to serve as a de facto agent for its Florida clients. Its launch came at the same time changes in commission rules emerged following the National Association of Realtors' court settlement, Realpha said the legal development would ultimately result in opportunities for technology-backed platforms like the one it offers to grab market share.

Realpha subsequently followed up with other strategic acquisitions over the next several months, including cybersecurity- and title-related assets, along with its purchase of Be My Neighbor, and now, GTG.

"This acquisition will strengthen our mortgage operations, allowing us to scale and more efficiently provide lending services through our AI-powered homebuying platform," Realpha Chief Financial Officer Piyush Phadke said about its latest deal with GTG. Financial terms were not disclosed. 

Some real estate platforms have operated mortgage divisions for years, with Redfin, Zillow and Remax already offering lending services. Other Realtor agencies have teamed up with lenders through joint ventures to directly market to their customers. Recent developments in the housing market are also driving mortgage companies to look for new partnerships with businesses in other industries. 

The rise of new technology platforms actively driving their real estate customers to internal lending businesses could add to mortgage industry worries in what is setting up to be a potentially tough 2025. In research published earlier this year by Arizent, parent company of National Mortgage News, more than one-third of the traditional lending community cited one-stop enterprises that offer both real estate and lending divisions under one roof among the top disruptions to their interests.