“This is a formidable combination,” said Bay Equity CEO Brett McGovern. “Redfin is a technology leader, and the alignment positions us both to thrive in a changing mortgage market. In addition to our established book of business, we will benefit from the customers generated by Redfin’s more than $25 billion in real estate transactions each year. Plus, we will have the opportunity to present Bay Equity to Redfin’s more than 40 million monthly online visitors. It’s all about making it easier for our customers to go from mortgage loan application to closing.”
Redfin revealed that it will slash 121 Redfin Mortgage roles – representing less than 2% of Redfin’s entire staff – primarily in sales support, capital markets, and operations.
The firm said it had already notified the affected employees, “who now have the opportunity to find another role” in its real estate support, title, and iBuying units. Those who can’t find or don’t want to pursue new positions at Redfin will get between 12 weeks and 26 weeks of severance, depending on tenure. Redfin also promised to support employees in finding new opportunities outside the company.
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The Bay Equity staff, meanwhile, don’t need to worry as the company confirmed it has no plans to reduce its workforce. Once the deal is closed, the Bay Equity management team will continue to operate under the Bay Equity name. All Redfin Mortgage lending operations will be consolidated under Bay Equity. Some Redfin Mortgage employees, including Redfin’s loan officers, will move to Bay Equity.