When Jesse Allen joined Rate in late 2024 to lead its reverse mortgage division, his mission was clear: accelerate growth at the Chicago-based lending giant. Rate, which ranked No. 9 nationally in forward mortgages with $45.6 billion in volume in 2025, has a modest reverse footprint—just 235 HECM endorsements last year, good for 17th place. But that represented 54% growth from the prior year. Allen, a reverse mortgage veteran with stints at OneTrust Home Loans and American Advisors Group, recently sat down with HousingWire to discuss Rate's strategy, proprietary products, and competitive dynamics.

The Big Picture

Rate had been passively originating reverse mortgages for years, doing about 100 loans annually purely on brand strength. But in 2024, the company decided to go all-in, doubling volume before Allen's arrival. "We built on everything that was working, like training forward loan officers," Allen explains. "Last year, the number of traditional LOs participating in reverse grew 60% year over year."

The strategy centers on scaling the technology platform—from the loan origination system to the CRM—to capture market share. "In March, we were 100 basis points better on market share, probably one of the fastest-growing lenders," Allen says. While progress is notable, he acknowledges "we have a ton of work to do."

“"We built on everything that was working... the number of traditional LOs participating in reverse grew 60% year over year."”

By the Numbers

• HECM Growth: 235 HECM endorsements in 2025, up 54% from the prior year.
• Market Share: Rate gained 100 basis points of market share in March 2026, positioning it as one of the fastest-growing lenders.
• Forward Volume: Rate ranked No. 9 nationally in forward mortgages in 2025, with $45.6 billion in volume.
• LO Expansion: The number of forward loan officers participating in reverse products grew 60% year over year in 2025.
• Proprietary Mix: Proprietary products now account for 30% of client transactions and 55-60% of dollar volume in the reverse division.

Why It Matters

Rate's strategy reflects a broader industry shift: the rising importance of proprietary reverse products versus traditional HECMs. While HECMs remain the cornerstone, proprietary loans allow lenders to serve clients who don't qualify for FHA programs—similar to how non-QM loans complement conventional ones in the forward market.

Allen notes that Rate hasn't developed its own proprietary products but partners with five investors: Longbridge Financial, Finance of America, Mutual of Omaha, Smartfi Home Loans, and Nationwide Equities. "We trust their service levels and know their operators," he says. This "best-of-breed" approach lets Rate offer a full suite without assuming the risk of building its own platform.

The winners here are proprietary investors who gain access to Rate's massive origination network. The losers could be smaller reverse lenders who lack the scale to compete. For consumers, the expanded offering means more options, especially for those with high-value properties that exceed HECM limits.

What This Means For You

For industry professionals, Rate's strategy offers clear lessons on scaling a reverse business:

1. 1Leverage existing networks: Training forward LOs to offer reverse products can drive rapid growth, as shown by the 60% increase in participation.
2. 2Invest in technology: Scaling the LOS and CRM is critical to handle increased volume without sacrificing efficiency.
3. 3Prioritize partnerships: Developing proprietary products in-house isn't necessary; alliances with established investors can provide a full suite with lower risk.

For investors, Rate represents a case study in expanding a niche business within a large platform. The combination of a strong brand, massive distribution network, and focus on proprietary products could translate into sustained market share gains.

What To Watch Next

The next key milestone will be Rate's ability to sustain its growth pace in 2026. With market share already up 100 basis points, the question is whether it can maintain that trajectory without compromising service quality. Additionally, the reverse mortgage market is watching for potential regulatory changes at the FHA that could affect HECM limits and insurance premium rates.

Another factor to monitor is competition from home equity investment (HEI) companies, which offer alternatives to reverse mortgages. Allen acknowledges this space is "on our radar," but he believes the value proposition of reverse loans—no equity dilution—remains compelling.

The Bottom Line

Rate Mortgage is executing a reverse mortgage growth strategy that combines leveraging its forward network, investing in technology, and partnering with proprietary investors. With 54% HECM growth and significant market share gains, the company demonstrates that even small players can gain ground if they exploit their strengths. The question now is whether they can maintain momentum in an increasingly competitive market.

Deeper Analysis: Market Implications

Rate's move into reverse is not an isolated case. Other large forward lenders, such as Rocket Mortgage and United Wholesale Mortgage, have also shown interest in expanding their reverse offerings, though with varying degrees of success. Rate's advantage lies in its ability to integrate reverse origination within its existing platform, minimizing marginal customer acquisition costs. This is particularly relevant in a high-interest-rate environment, where older homeowners seek alternatives to access equity without selling their homes.

Moreover, Rate's focus on proprietary products could insulate it from potential regulatory changes to the HECM program. If the FHA adjusts loan limits or insurance premiums, lenders with a diversified proprietary product portfolio will be better positioned to adapt. This also explains why Rate has chosen to partner with multiple investors rather than build its own platform: the flexibility to pivot between products based on market conditions.

Investor Perspective

For investors tracking the senior housing sector, Rate's strategy offers a glimpse into how economies of scale can apply to a traditionally fragmented niche. Rate's ability to cross-sell reverse products to its existing forward customer base significantly reduces acquisition costs, improving margins. If the company can sustain its growth pace, it could capture meaningful market share in the coming years, pressuring independent reverse lenders.

However, investors should be cautious. The reverse mortgage market is highly sensitive to interest rates and home prices. A downturn in housing values could reduce available equity, limiting demand. Additionally, competition from HEI companies, which offer equity-sharing agreements without interest, could erode the customer base for traditional reverse loans.

Near-Term Catalysts

Over the next 12 months, several factors could drive Rate's reverse growth:

• Fed rate cuts: If the Federal Reserve lowers rates, adjustable-rate HECMs become more attractive, potentially boosting demand.
• Targeted marketing campaigns: Rate could launch campaigns aimed at older homeowners, leveraging its forward customer database.
• Partnership expansion: Adding new proprietary investors could broaden the product suite, attracting more borrowers.

On the flip side, risks include FHA regulatory tightening or an economic downturn that reduces consumer confidence.

Reader Takeaway

Rate Mortgage's story is a reminder that in financial markets, distribution often trumps product. By leveraging its forward network and strategic partnerships, Rate has achieved impressive growth in a competitive niche. For industry professionals, the lesson is clear: integrating reverse products into existing forward platforms can be a powerful growth tool. For consumers, it means more options and better access to products that can help fund retirement. Time will tell if Rate can maintain momentum, but for now, its strategy deserves attention.