Guaranteed Rate Expands Nationwide Initiative to Transform the Home Lending Experience for Underserved Communities

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May 13, 2024, 09:00 ET

Phase two ushers in additional programming, continuing education, new tools, and tech-driven solutions

CHICAGO, May 13, 2024 /PRNewswire/ -- Guaranteed Rate, the second largest retail mortgage lender in the country, announces the next wave of expansion of its Community Engagement Initiative, designed to significantly improve funded volume in underserved communities nationwide. May 2024 marks the formal launch of phase two of this initiative, as the company has recorded rapid progress in its community work with diverse segments.

The initiative's first phase focused on internal infrastructure projects, including reporting enhancements to track loan performance, processing and underwriting training, additional loan products, and establishing strategic partnerships to expand the Guaranteed Rate brand in underserved markets. In addition, this phase included breakthrough projects such as the Language Access Program and the First Black Leadership Symposium.

The second phase builds on the success of these initial efforts with the launch of RateUniversity, a community outreach effort in English and Spanish that promotes financial education and culture in large metros. It also introduces the company's GTM (Go to Market) plan, comprehensive, multi-media brand awareness campaigns, and ongoing recruitment from low and moderate-income (LMI) markets. These combined efforts are complemented by strengthened community partnerships and enhanced financial education resources in English and Spanish.

Since the initiative's inception in 2023, Guaranteed Rate has demonstrated substantial progress in increasing diversity within its national workforce and among its clientele. From 2019 to the current year, the diversity in its sales force has grown from 16% to 23%, with a net headcount increase from 176 to 379. Additionally, the percentage of funded loans from diverse consumers has risen from 12% to 29.6% of total funded loans across the company, illustrating a robust growth in engagement and support for diverse communities.

"We have made significant strides in opening up home lending and ownership for underserved communities, but our work is far from finished," said Camilo Escalante, Executive Director of Diverse Segments at Guaranteed Rate. "Traditional lending practices have overlooked Black and Latino communities, as well as low to moderate-income areas. Our program blazes new trails with dedicated focus, specific budgets, and targeted partnerships in these communities. As we move into the next phase, we will continue to expand our educational resources and prioritize diverse employee retention, which is crucial for building community ties and strengthening our leadership in serving LMI and underserved markets."

Guaranteed Rate's ongoing dedication to multicultural markets creates more significant value in its service offerings and positions the company as a pivotal force in the recovery and growth of the national real estate market. The company is ensuring that underserved communities are positioned to participate, as economists predict the real estate market will recover in 2024 after a spike in mortgage rates and a shortage of properties sent sales tumbling to a 28-year low in 2023.

"We are encouraged to see that Latinos already comprise 51% of First-Time Homebuyers (FTH), and we believe that can go as high as 70% over the next two decades, as predicted by the Urban Institute," added Escalante. "We will always lean in to support growth in other underserved communities. This is not a one-and-done community approach."

"In the IMB space, Guaranteed Rate, as a leader and enabler of change, continues to push for the industry to do better to reach and educate underserved communities," said Arlyn Kalinski, SVP Fair & Equitable Lending Strategies for Guaranteed Rate. "We leverage our expertise and values-focused strategy to expand and enhance homeownership programs such as affordability programs. Getting the word out about our products, tools, and services to all communities and being intentional in our outreach through equitable marketing strategies and financial education events are mission-critical for Guaranteed Rate."

"Our commitment to serving diverse markets is unwavering. As we get into phase two and build on all that we achieved in our first year, we aim not only to continue what we started but to elevate our efforts, ensuring that more families have the opportunity to own homes and prosper," said Victor Ciardelli, CEO of Guaranteed Rate. "The work we are doing stands apart in the industry, as we ensure that these communities have the access, tools, support, and warm welcome they deserve."

For more information about Guaranteed Rate's Community Engagement Initiative and work with diverse segments, please visit the company's Community Engagement page or email [email protected].

About Guaranteed Rate
Guaranteed Rate Companies is a leader in mortgage lending and digital financial services. Headquartered in Chicago, the Guaranteed Rate Companies is the #2 retail mortgage lender in the U.S. with over 850 branches across the U.S. serving all 50 states and Washington, D.C. Since its launch in 2000, Guaranteed Rate Companies have helped more than 2 million homeowners with home purchase loans and refinances. The company has cemented itself as an industry leader by introducing innovative technology, offering low rates, and delivering unparalleled customer service. Honors and awards include Best Mortgage Lender for First Time Homebuyers by NerdWallet for 2023; HousingWire's Tech100 award for the company's industry-leading FlashClose℠ in 2020, digital mortgage platform MyAccount in 2022, and Language Access Program in 2023; No. 2 ranking in Scotsman Guide's 2022 list of Top Retail Mortgage Lenders; The most Scotsman Guide Top Originators for 11 consecutive years; Chicago Agent Magazine's Lender of the Year for seven consecutive years; and Chicago Tribune's Top Workplaces list for seven consecutive years. Visit rate.com for more information.

SOURCE Guaranteed Rate