Terms of the deal were not disclosed. But in a prepared statement, the companies say the JV, Resort Trust Mortgage LLC, will allow ResortQuest, with a management portfolio of 20,000 properties, to leverage its existing real estate business. At the same time, the deal will give Wells Fargo entrée to the timeshare industry.
"This is a key venture for us, especially at a time when the popularity of vacation homes continues to rise," says Wells Fargo executive Kim Castiglioni.
ResortQuest president and chief executive officer Jim Olin also sees a new revenue window opening for his firm. "The agreement will allow for ResortQuest to expand its real estate potential vertically, while keeping the operating risks at a minimum," Olin says.
Initially, ResortQuest will offer mortgages and other financial products and services in its real estate locations throughout Florida. Later, the company anticipates expanding its new financial services to other national markets.
ResortQuest, moving from Memphis, TN, has the bulk of its management portfolio of vacation condos, homes and villas in central, southwest and northwest Florida.
Wells Fargo Home Mortgage has 1,600 mortgage and Wells Fargo bank stores in 50 states. Combined, the company says its retail and wholesale lending operations provide funding for about one of every eight homes financed annually in the United States.
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