The reverse mortgage division of Rate, formerly known as Guaranteed Rate, has been on a mission to bolster its market presence for the past few years. According to Home Equity Conversion Mortgage (HECM) endorsement data compiled by Reverse Market Insight (RMI), the company grew its endorsement volume by roughly 870% year to date through July.
Keeping that momentum going is a priority for Jesse Allen, who was recently announced as the president for Rate’s reverse lending division. Allen sat down with HousingWire‘s Reverse Mortgage Daily (RMD) to discuss the role and his plans for the short and medium terms.
Taking the reins
Allen described that the new role came about after he was approached with an opportunity. He recognized that the company is uniquely suited to become a larger player in the reverse mortgage space.
“Rate offers a comprehensive platform — we’re one of the top-ranked retail lenders in the industry,” Allen said of its forward lending side. “Having been around the industry for a while, I’ve gotten to know and network with different leaders within the Rate leadership team. Over time, it became clear they were serious about their commitment to the 55-plus demographic and about expanding their already broad product suite.”
The company’s experience with multiple product offerings and the momentum it has demonstrated on the reverse side was immediately attractive to Allen, he explained.
“They’re experts at delivering a variety of financial solutions to diverse customers, and I felt there was a good cultural alignment,” he said. “The comprehensiveness of the platform and their specific focus on the 55-and-over demographic were really appealing to me.”
Building on what’s there
Allen was complimentary of Ryan Ogata, his predecessor in the reverse leadership role. Ogata has returned to a mutually beneficial forward management role at the company. He oversaw a lot of growth in the reverse division, and Allen hopes to build on that momentum now that he has the “baton.”
“Ryan talked about creating demand and using Rate’s comprehensive platform — the reach, the brand credibility and the resources that come with a platform like this — to touch more people and make an impact,” Allen said. “From my perspective, it’s about building on what’s already been established.”
The reverse mortgage industry remains small relative to the size of its forward counterpart, but that doesn’t diminish the demand opportunity, Allen said. The challenge is to place experts into situations where they can effectively identify reverse mortgage prospects.
“That’s the opportunity, the addressable audience,” he said. “So, in one sense, you’re not creating that demand. It already exists. Instead, you’re helping folks identify the pain points and opportunities in real time, and then be able to inform them and guide them and motivate them to take action.”
Allen credits his prior years in reverse — having rejoined the industry in 2016 at former industry leader American Advisors Group (AAG) — as experience that helps him to identify these scenarios. But he also credits his two decades in consumer banking as a factor that can help push things forward.
“When you consider Rate’s existing distribution channels and the credibility of its brand, those systems are already interacting with thousands of homeowners every day,” Allen said. “Some of those homeowners are experiencing life events right now. The goal is to capitalize on that ecosystem by injecting expertise and knowledge into those conversations at the point of sale.”
These factors helped Rate become one of the top 20 reverse mortgage originators. And they are similar to the approaches taken at other forward-first companies like Fairway Independent Mortgage Corp. and Guild Mortgage, Allen said.
“It’s certifying existing distribution teams so they can recognize opportunities and be positioned to intervene effectively,” he said.
Looking ahead
The foundation of the division can be bolstered through the addition of scalable expertise, Allen added.
“This includes bolstering our consumer-direct efforts, as you saw in the recent announcement about Greg [Pahel]’s team, while also expanding our concierge team of specialists to support the existing distribution force,” Allen explained.
“Additionally, we’re developing local-market relationships with reverse mortgage experts who can partner with retail loan officers, connect with referral partners and engage directly with clients. This in-person piece takes time to scale, but it’s an essential component of the overall strategy.”
This is just the beginning — and Allen had only been the job for a few days when he spoke with RMD. But he is bullish on the prospects for the business and feels like momentum is on the reverse industry’s side.
“I think we will begin to scratch the surface on the opportunity and we have a bigger megaphone with responsible, seasoned, trained professionals to begin to have that conversation [with our prospects],” he said.