The reverse mortgage distribution of Rateformerly known as Guaranteed ratehas been on a mission in recent years to strengthen its presence in the market. According to the Home Equity Conversion Mortgage (HECM) approval data collected by Reverse market insight (RMI), the company has increased its approval volume by approximately 870% through July.
Keeping that momentum going is a priority for Jesse Allen, who was recently announced as president of Rate’s reverse lending division. Allen sat down HousingWire‘s Reverse Mortgage Daily (RMD) to discuss the role and its plans for the short and medium term.
Taking the reins
Allen described that the new role came about after being approached with an opportunity. He acknowledged that the company is uniquely positioned to become a bigger player in the reverse mortgage space.
“Rate offers a comprehensive platform – we are one of the top-ranked private lenders in the industry,” Allen said of the term loans. “Having been in the industry for a while, I have been able to get to know and network with several leaders within the Rate leadership team. Over time, it became clear that they were serious about their commitment to the over-55s and expanding their already broad product offering.”
The company’s experience with multiple product offerings and the momentum it has shown on the other side were immediately attractive to Allen, he explained.
“They are experts in providing a variety of financial solutions to diverse clients, and I felt there was good cultural alignment,” he said. “The extensiveness of the platform and their specific focus on the target group of people over 55 really appealed to me.”
Building on what is there
Allen complimented Ryan Ogata, his predecessor in the reverse leadership role. Ogata has returned to a mutually beneficial management role at the company. He oversaw a lot of growth in the upside-down division, and Allen hopes to build on that momentum now that he has the baton in his hands.
“Ryan talked about creating demand and using Rate’s extensive platform – the reach, brand credibility and resources that come with a platform like this – to reach more people and make an impact,” said All. “From my perspective, it’s about building on what’s already established.”
The reverse mortgage industry remains small relative to the size of its future counterpart, but that doesn’t detract from demand opportunities, Allen said. The challenge is to put experts in situations where they can effectively identify the prospects for reverse mortgages.
“That’s the opportunity, the addressable audience,” he said. “So in a sense you’re not creating that demand. It already exists. Instead, you help people identify the pain points and opportunities in real time, then inform, guide and motivate them to take action.”
Allen credits his previous years in reverse order: after rejoining the industry in 2016 with the former industry leader American consultant group (AAG) – as an experience that helps him identify these scenarios. But he also sees his two decades in consumer banking as a factor that can move things forward.
“When you consider Rate’s existing distribution channels and the credibility of its brand, these systems already connect with thousands of homeowners every day,” said Allen. “Some of those homeowners are currently experiencing life events. The goal is to take advantage of that ecosystem by injecting expertise and knowledge into the conversations at the point of sale.”
These factors have made Rate one of the top 20 reverse mortgage providers. And they’re similar to the approaches of other forward-thinking companies, such as Fairway Independent Mortgage Corp. And Guild MortgageAllen said.
“It certifies existing distribution teams so they can identify opportunities and be positioned to intervene effectively,” he said.
Looking ahead
The division’s foundation can be strengthened by the addition of scalable expertise, Allen said.
“This includes strengthening our consumer-facing efforts, as you have seen recently announcement about Greg [Pahel]’s team, while also expanding our concierge team of specialists to support the existing distribution team,” explains Allen.
“In addition, we are developing relationships in the local market with reverse mortgage lending experts who can collaborate with retail loan officers, connect with referral partners and connect directly with customers. It takes time to scale this personal piece, but it is an essential part of the overall strategy.”
This is just the beginning – and Allen had only been in office for a few days when he spoke to RMD. But he is optimistic about the prospects for the company and feels the momentum is on the other side of the sector.
“I think we’re going to explore the opportunity and have a bigger megaphone with responsible, seasoned, trained professionals to start that conversation. [with our prospects]” he said.
