HomeServices of America's mortgage unit, Prosperity Home Mortgage, is expanding into loan servicing, a strategic move by the Berkshire Hathaway affiliate that signals a heightened retention threat for competing lenders accustomed to picking up offloaded purchase borrowers.

By retaining long-term servicing rights in-house, Prosperity eliminates the post-closing handoff to external institutions, creating an end-to-end ecosystem alongside HomeServices' brokerage,  title, and insurance operations. The shift mirrors recent consolidation moves by rivals like Rocket Companies, raising the competitive bar for originators that lack integrated servicing to protect customer lifetime value.

"Buying a home may be one transaction, but homeownership is a journey that lasts for years," said Chris Kelly, president and CEO of HomeServices, in the release. "For too long, our industry has accepted a model where consumers are handed from one company to another throughout the transaction and, after closing, their mortgage may be handed off yet again to a company they have never heard of. We believe there is a better way."

Prior to the launch, no company within HomeServices historically retained long-term service rights.

The additional in-house support advances the recently launched OnePoint solution, which enables HomeServices' operating companies to provide customers with a unified system of brokerage, mortgage, title and insurance services. OnePoint aims to power the complete real estate experience, now including mortgage servicing.

Over the past two years, Rocket has also created an end-to-end real estate platform similar to Zillow's with the acquisitions of Mr. Cooper's servicing and real estate brokerage Redfin, signaling the mega lender agrees with HomeServices' sentiment. 

"Prosperity has always believed that closing a mortgage should be the beginning of a relationship, not the end of one," said Justin Messer, president and CEO of Prosperity. "Adding this service gives us the ability to remain connected to the families we help finance and deliver a more consistent experience throughout their homeownership journey."

Prosperity, a retail mortgage lender focused mainly on purchase transactions, has originated $9 billion in loans annually across about 21,000 transactions, according to the release.

HomeServices' other mortgage entity, HomeServices Lending, will eventually offer mortgage servicing as well. For now, the lender will continue to transfer loans to outside financial institutions, while the parent company focuses on Prosperity's launch, a spokesperson told National Mortgage News.