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Rate (company)

Rate, formerly known as Guaranteed Rate, is an American residential lender founded in 2000 by Victor Ciardelli and headquartered in , . The company specializes in home purchase loans, refinances, and related financial products such as home equity lines of credit (HELOCs), leveraging digital technology to streamline processes and offer rapid approvals, including its Same Day Mortgage program. With nearly 4,000 employees, Rate has grown into one of the largest retail mortgage lenders in the United States, originating over $113 billion in loans since inception and funding $35 billion in 2023 alone. Key innovations include launching the world's first fully digital mortgage in 2015 and the FlashClose™ service in 2019, which enable faster closings and greater transparency for customers frustrated by traditional industry practices. The firm's rebranding to Rate in July 2024 reflects its evolution toward fintech leadership, simplifying its identity while expanding services like insurance through Rate Insurance, LLC. Rate operates nationwide, licensed in all 50 states and Washington, D.C., and has earned recognition such as a 2025 U.S. News award for its mortgage offerings.

Company Overview

Founding and Rebranding

Rate was founded in June 2000 by Victor Ciardelli in , , initially operating as Guaranteed Rate with the mission of delivering greater value to customers through a more efficient lending process than traditional banks. Ciardelli, who had prior experience in the mortgage industry, raised $2.5 million from family and friends to launch the company amid a competitive market dominated by slower, less transparent lenders. In its inaugural year, Guaranteed Rate originated $200 million in using just eight employees, establishing an early focus on technology-driven speed and customer prioritization despite facing economic and industry skepticism. The company underwent a significant on July 9, 2024, simplifying its name to to better align with its expansion beyond traditional mortgages into a broader emphasizing , simplicity, and seamless digital experiences. This change dropped the "Guaranteed" prefix, introduced a new , and involved phased updates to websites, materials, and subsidiaries like Rate Insurance, reflecting the firm's evolution into the second-largest retail lender in the United States by volume. The rebrand aimed to streamline operations and reinforce Rate's leadership in technology, building on its origins as a disruptor in lending efficiency.

Business Model and Operations

Rate functions as a retail mortgage originator, specializing in residential loans for home purchases, refinances, and home equity products such as HELOCs. The company generates through standard industry practices, including origination fees (typically 1% of the loan amount), markups applied to wholesale investor pricing to capture profit margins, and the subsequent sale of funded loans on the after brief warehouse line . In 2024, Rate originated $25.6 billion in loans, down from $35 billion in 2023, reflecting market volume fluctuations while prioritizing high-efficiency production. Operations leverage a hybrid structure of digital fintech tools and a physical branch network exceeding 850 locations across all 50 states and , facilitating both online and in-person processing. Key technological innovations include the launch of the world's first fully in 2015, enabling end-to-end online applications completable in about 15 minutes, and the Same Day ™ program (introduced in 2023), which delivers approvals in as little as 24 hours and has funded over $4 billion to date. Additional features like 5-minute pre-approvals, FlashClose™ for expedited closings, and the Rate App™ for financial planning support rapid turnaround, with the company reporting 97% in 2023 surveys. Loan officers and teams operate under the Proactive POD model, which assigns managed leads and resources to scale individual lending volumes efficiently, emphasizing proactive outreach and streamlined . This operational framework, headquartered in , , combines automated systems for pricing transparency and compliance with human oversight for complex cases, allowing Rate to position itself as a low-rate, high-speed lender amid competitive dynamics.

Leadership and Corporate Structure

Victor Ciardelli serves as the founder, , , and chairman of , a position he has held since establishing the company in as Guaranteed Rate. On March 5, 2025, Ciardelli appointed Shant Banosian, a top-ranked originator with over $10 billion in funded volume, as of Mortgage, while retaining his role as CEO and across all Rate entities. Banosian, previously the No. 1 officer in the U.S. by volume for multiple years, reports directly to Ciardelli and focuses on mortgage origination operations. The executive team comprises specialized officers overseeing operations, technology, compliance, and growth. Key members include Nikolaos (Nik) Athanasiou as , responsible for day-to-day efficiency; Kasey Marty as , driving sales and partnerships; Rola Gurrieri as chief fulfillment officer, managing loan processing; and Regina Lall as , ensuring regulatory adherence. Additional C-suite roles cover product and technology under Ramesh Sarukkai, legal affairs via Anwar Shatat as , performance metrics led by Paul Anastos, analytics by Adam Shoger, and capital markets by Jeremy Collett. Finance is handled by Ted Ahern as interim and , alongside Ken Kane as chief accounting officer.
Executive RoleNameKey Responsibilities
Chief Operating OfficerNik AthanasiouOperational efficiency and scaling
Chief Revenue OfficerKasey MartyRevenue generation and strategic partnerships
Chief Fulfillment OfficerRola GurrieriLoan processing and fulfillment
Chief Product & Technology OfficerRamesh SarukkaiInnovation in digital mortgage tools
Chief Performance OfficerPaul AnastosPerformance optimization across teams
Rate maintains a hierarchical corporate structure typical of privately held financial services firms, with Ciardelli at the apex providing centralized strategic direction. The organization operates through subsidiaries including Guaranteed Rate Inc. (core mortgage lending, NMLS #2611), Guaranteed Rate Affinity LLC (joint ventures), and Proper Rate LLC, enabling diversified operations in , wholesale, and lending. Headquartered at 3940 N. Ravenswood in , , the company employs over 9,000 personnel nationwide, emphasizing a blend of technology-driven processes and field-based originators. As a entity, Rate discloses limited details publicly, with no independent identified in available records; decision-making appears founder-centric, aligned with Ciardelli's entrepreneurial oversight.

Historical Development

Early Years and Initial Growth (2000–2011)

Guaranteed Rate, originally operating under that name before rebranding to Rate, was founded in June 2000 by Victor Ciardelli in , , with a focus on delivering low mortgage rates, innovative technology, and full transparency to customers frustrated by industry opacity. Ciardelli, drawing from personal experience in the sector, aimed to streamline the lending process by emphasizing efficiency and customer-centric practices over traditional broker models. The company launched as a small mortgage lender headquartered on Chicago's north side, targeting home purchase and refinance loans amid a competitive post-dot-com environment. In its inaugural year, Guaranteed Rate originated $200 million in volume using a lean team of eight employees, who accepted pay cuts to sustain operations during economic headwinds and from observers who viewed the model as unrealistic. Growth stemmed primarily from word-of-mouth referrals and alliances with agents, who valued the firm's reliable processing and competitive pricing, enabling steady expansion beyond initial local markets in . By prioritizing digital tools for faster approvals and fixed low rates—uncommon at the time—the company differentiated itself, originating loans for hundreds of borrowers annually in the mid-2000s as housing demand rose pre-financial crisis. Through the late 2000s, amid the subprime mortgage downturn, Guaranteed Rate navigated challenges by adhering to conservative underwriting standards, avoiding high-risk products that plagued competitors, and incrementally broadening its footprint to additional states. By , the firm had established a presence in select markets, with origination volumes building toward multibillion-dollar scales in subsequent years, supported by a growing officer and early adoption of online application systems that reduced closing times to under 30 days. This period laid the foundation for scalable operations, as employee count and geographic reach expanded modestly but purposefully, setting the stage for accelerated growth post-2011 recovery.

Expansion Era (2012–2020)

In 2012, Guaranteed Rate more than doubled its volume from the previous year, funding over $14.7 billion in residential while generating $496.5 million in revenue, marking 172% year-over-year growth that positioned it as the top-ranked lender for revenue expansion among peers. This surge was supported by strategic acquisitions, including Mortgage and Superior Mortgage, which enhanced in the Northeast and Midwest. By the fourth quarter of 2012 alone, the company originated 17,552 loans totaling more than $4.9 billion, nearly double the volume from the same period in 2011, reflecting accelerated operational scaling amid favorable housing conditions. The period saw continued volume increases, with 2013 funding reaching approximately $15.9 billion, though growth moderated compared to the prior year's leap, as the company focused on stabilizing its expanded footprint and diversifying loan products, including a rise in adjustable-rate mortgages from 3% to 8% of total volume between 2012 and 2013. Expansion efforts emphasized branch network development across multiple states, enabling nationwide origination capabilities while maintaining a retail-focused model that prioritized loan officer productivity. By the late 2010s, monthly origination records underscored this momentum, such as $3.46 billion funded in 2019 and $3.94 billion locked in April 2019, driven by technological efficiencies and low interest rates. The era culminated in 2020, when surging refinance demand amid historically low rates propelled total funded volume to $73 billion, doubling 2019 levels and tripling revenue to $3 billion, with employee headcount expanding to support the influx. This growth was unevenly distributed, with subsidiaries like contributing over $13 billion independently, highlighting the company's shift toward integrated operations and opportunistic capture of during the refi boom. Overall, the decade transformed Guaranteed Rate from a regional player into a top-tier national lender, though reliant on macroeconomic tailwinds like declining rates rather than solely internal innovations.

Recent Milestones (2021–Present)

In 2021, Guaranteed Rate ranked eighth among top overall lenders by loan volume according to Scotsman , reflecting robust performance amid a refinancing boom driven by historically low interest rates. The company launched OriginPoint, a title and escrow services platform, in partnership with Compass in July, aiming to integrate real estate and lending processes. It also received the Servicer Honors and Rewards Program () Award for servicing excellence. By 2022, Guaranteed Rate maintained strong originator rankings in Scotsman Guide, with three professionals in the top 10 for dollar volume, including Shant Banosian at second place with over $2.2 billion originated. In September, the company introduced one of the most comprehensive Spanish-language mortgage programs in the U.S., targeting underserved communities with translated resources and support. In 2023, Guaranteed Rate's originators again dominated Scotsman Guide rankings, with Banosian named the top national originator. The company earned NerdWallet's designation as the best mortgage lender for first-time homebuyers, citing its digital tools and accessibility. The company originated $25.6 billion in loans in 2024 amid a challenging high-rate . On July 9, , Guaranteed Rate rebranded to simply "Rate," streamlining its identity to emphasize innovation and customer experience while retaining its headquarters. In 2025, Rate commemorated its 25th anniversary with the Rate25 initiative launched in , uniting employees nationwide to reflect on growth as the second-largest retail lender. It ranked sixth in Scotsman Guide's top overall lenders. named Rate the best overall lender for 2025, praising its platform and loan options. also recognized it as the best for first-time homebuyers in 2025.

Acquisitions, Mergers, and Workforce Changes

Major Acquisitions

In January 2021, Rate announced a definitive agreement to acquire Stearns Holdings, LLC, a Texas-based lender operating in wholesale, retail, and correspondent channels, from funds managed by The Blackstone Group. The deal enhanced Rate's multichannel capabilities and leadership, with Stearns contributing significant origination volume prior to its integration. Later that year, in 2021, Rate acquired Owning Corporation, a California-based direct-to-consumer mortgage platform, marking its second purchase in quick succession and aimed at accelerating growth strategies. In April 2022, Rate completed the acquisition of Attorneys' Title Guaranty Fund Inc. (ATG), a Chicago-based title insurance underwriter, to streamline residential transaction processes through of mortgage and title services. ATG's operations complemented Rate's core lending business by reducing closing times and costs for customers. By June 2023, Rate secured full ownership of Premia Relocation Mortgage, buying out its partner (formerly Serva/BGRS), which specialized in relocation lending for corporate clients. This transaction solidified Rate's position in niche markets like employee mobility financing, previously shared in the partnership structure.

Layoffs and Organizational Restructuring

In response to rising mortgage rates and a slowdown in the housing market beginning in late 2021, Guaranteed Rate initiated a series of reductions. Layoffs commenced in November 2021 and continued through subsequent months, including January and March 2022, as the company adjusted to declining origination volumes. These cuts were exacerbated by the integration of acquired entities, such as , where Guaranteed Rate discontinued the third-party wholesale division, resulting in approximately 348 layoffs in early January 2022. By 2023, the firm had reduced its workforce significantly from a pre-2022 peak of 8,000 to 9,000 employees, with ongoing quiet layoffs across the reported by former staff. In August 2023 alone, two rounds of cuts affected hundreds of positions, including staff and high-level roles, amid persistent market contraction. As of April 2024, employee headcount stood at 3,871, reflecting thousands of total reductions over the period. Organizational changes accompanying these layoffs included realignments, though details remained internal and drew mixed employee on execution . No major structural overhauls, such as divisional consolidations beyond acquisition integrations, were publicly detailed, with reductions primarily driven by cost containment in a high-interest-rate environment.

Products, Services, and Innovations

Core Mortgage Offerings

Guaranteed Rate's core mortgage offerings encompass conventional loans, government-backed options, and specialized products tailored for home purchases, refinances, and access. Conventional fixed-rate s, available in 15-year and 30-year terms, feature unchanging rates over the loan's , appealing to borrowers seeking payment stability; as of recent data, 30-year fixed rates averaged around 6.155%. Adjustable-rate s (ARMs), including 5-year, 7-year, and 10-year initial fixed-period variants, offer lower introductory rates that adjust periodically based on indexes, suitable for short-term homeowners or those anticipating rate declines. Government-insured loans form a key pillar, with (FHA) mortgages enabling down payments as low as 3.5% and accommodating scores starting at 580, backed by federal insurance to reduce lender risk. (VA) loans provide zero-down-payment financing, no private insurance, and funding fee waivers for certain disabled veterans, targeting eligible with competitive rates around 5.250% as of late 2025. loans, exceeding conforming loan limits (e.g., $766,550 in most U.S. areas in 2025), cater to high-value buyers through non-conforming conventional structures, often requiring stronger and reserves. Refinance products mirror purchase options, including rate-and-term refinances to lower payments and cash-out variants for equity extraction, with streamlined processes for FHA and USDA loans minimizing documentation. lines of credit (HELOCs) and renovation loans, such as FHA 203(k), support property improvements by financing both purchase and repair costs in a single . Non-qualified (non-QM) loans represent an edge offering, using alternative income verification like bank statements or assets for self-employed or irregular-income borrowers ineligible for standard qualified . These products emphasize digital pre-approvals and fast closings, with the firm originating over $25.6 billion in loans in 2024.

Technological Features and Digital Tools

Rate's Digital Mortgage platform facilitates rapid pre-approvals by integrating real-time rate checks, automated credit pulls, and , often delivering approvals in as little as 10 to 15 minutes. This system supports secure document uploads, e-signatures via cloud-based technology, and mobile access, reducing processing times by up to two days compared to industry averages. Integration with 's verification further accelerates by shortening processing by over eight days through automated data sharing. In October 2024, Rate launched Rate Intelligence, an AI-powered lending platform backed by a $100 million , designed to automate verification, , and other manual steps for enhanced efficiency. This tool extends to insurance operations via Rate Insurance, where AI features improve agent efficiency and customer quote comparisons in a digital marketplace introduced in November 2024. Additional tools include the RED-VP , released in July 2022, which provides lenders with an end-to-end digital pipeline for on-the-go management. Earlier, in March 2021, Rate introduced Gateless, a technology solution leveraging to optimize the full lifecycle from application to closing. These innovations prioritize speed and automation while maintaining compliance through digital , such as one for point-of-sale reviews launched in November 2024.

Marketing and Public Engagement

Sponsorship Deals

In August 2016, Guaranteed Rate secured a 13-year naming rights agreement for the Chicago White Sox's home stadium, renaming it , which aimed to enhance brand visibility in the market. The deal, valued at an undisclosed amount but part of a broader to connect with local sports fans, ran through 2029. Following the company's rebranding to Rate in July 2024, the stadium name was shortened to on December 17, 2024, maintaining the existing agreement terms. Guaranteed Rate expanded into college football sponsorships with the Guaranteed Rate Bowl, initially partnering in 2017 and extending the title sponsorship in May 2022 for four additional years through 2026, hosting annual postseason games in . In bowling, the company became the title sponsor of the () Tour starting in 2021, renewing for the 2022 season to support 30+ events nationwide. The firm also targeted niche and Olympic-adjacent sports, serving as title sponsor for in 2020 and 2021, events organized by U.S. featuring international competitors. In fishing, Rate sponsored five Bassmaster Elite Series events in 2022, including tournaments at Lakes (March 17–20) and Chickamauga Lake. Broader partnerships included official mortgage deals with the (November 2021), U.S. Ski & Snowboard (December 2021), and the Professional Pickleball Association Tour (October 2021), alongside affiliations with 15 teams and motorsports like . These deals emphasized digital mortgage promotions tied to event visibility, though specific financial terms beyond multi-year commitments were not publicly disclosed in most cases.

Branding Strategies

In July 2024, the company rebranded from Guaranteed Rate to simply "," aiming to emphasize simplicity, innovation, and a unified identity across its expanding and services. This shift, announced on July 9, involved unveiling a new logo featuring a modern, minimalist design to reflect streamlined customer experiences and technological leadership. The rebranding process was implemented gradually, updating websites, social media, marketing materials, and subsidiaries like Rate Insurance, which aligned its identity shortly thereafter on July 10. The strategy positioned Rate as a forward-looking entity beyond traditional mortgage lending, incorporating digital tools and product diversification to appeal to tech-savvy consumers while maintaining core guarantees of low rates and fast closings. Company leadership described the change as more than nominal, signaling a "new era" focused on ease of use and broader integration. This included extending the brand to high-visibility assets, such as renaming its sponsored stadium from Guaranteed Rate Field to , effective December 18, 2024, to reinforce market presence in the company's hometown. Earlier branding efforts emphasized personal empowerment for loan officers through marketing platforms that supported individual branding via digital campaigns, collateral, and events, contributing to the company's growth from a startup to a major lender. These initiatives, handled by external firms, encompassed refinements, , and to build a professional yet approachable image centered on affordability and efficiency. The overall approach has prioritized digital promotion of tools like loan-finders and valuation apps to target younger demographics, differentiating Rate in a competitive .

Reception and Recognition

Awards and Industry Accolades

Rate has been recognized by industry publications for its performance in , servicing, and technological adoption. In 2021, the company received a Gold Award from Freddie Mac's Servicer Honors and Rewards Program for superior servicing portfolio performance, outstanding borrower , and efforts to minimize delinquencies. HousingWire has multiple times included Rate in its Tech100 Mortgage list, acknowledging the company's digital tools such as its mortgage application platform. NerdWallet named Rate the Best Mortgage Lender for First-Time Homebuyers in 2023, citing its competitive rates, low fees, and user-friendly online process. In rankings of retail mortgage lenders, Scotsman Guide placed Guaranteed Rate (now Rate) among the top performers annually, with the company leading or ranking highly for over a through 2022 based on loan volume. Regional honors include Lender of the Year awards from Chicago Agent Magazine in 2024 and Boston Agent Magazine in 2023, reflecting agent-voted recognition for reliability and market presence. In 2024, Rate's division earned a spot among Insurance Journal's Top 100 Agencies, honoring growth, , and in property-casualty . The same year, its arm received the Progressive Platinum Winning Award for the fourth consecutive time, awarded to top agents for excellence in placing Progressive business. Fortune magazine selected Rate as one of the Best Mortgage Lenders for 2025, evaluating factors like loan affordability, borrower satisfaction, and operational efficiency. Inside Mortgage Finance ranked Rate among the top five U.S. mortgage lenders by origination volume in 2024.

Market Performance and Criticisms

Rate originated approximately $21.7 billion in mortgage loans in 2024, securing the fourth position among top retail mortgage lenders and ninth overall, with 59,181 loans closed. This volume marked a decline from $35 billion in , reflecting broader contraction amid elevated rates that reduced overall originations by double digits year-over-year. According to 2024 HMDA data, Rate advanced to seventh among top lenders by dollar volume, up from eleventh in , indicating resilience in a challenging purchase-dominated where refinance activity remained subdued. The company's first-quarter 2024 origination volume reached $7 billion, supporting its position as a leading non-bank lender focused on channels. Rate's emphasis on tools and operations contributed to gains for large nonbanks in early 2024, even as total industry volumes fell. Historical growth has been robust, with five-year revenue expansion exceeding 300% prior to recent cycles and tripled gross revenue from $1 billion to $3 billion by , though private status limits precise post-2020 revenue disclosures beyond estimated $2.5 billion in 2024. Criticisms of Rate center on customer service shortcomings, with average ratings across review platforms ranging from 2.5 to 4.5 out of 5. Common complaints include unprofessional , poor communication during loan processing, delays, and perceived overpromising on terms, as reported in user reviews on sites like WalletHub, ConsumerAffairs, and Reddit. The logged 39 mortgage-related complaints in 2024, predominantly involving problems with applications, unexpected fees, and payment handling, though this represents a below-average volume relative to peers. Rate maintains an A+ rating, attributed to responsive complaint resolutions, but detractors cite ongoing issues like post-closing harassment and chaotic processes. These service lapses contrast with operational strengths, potentially stemming from high-volume scaling in a rate-volatile .

Workplace Culture Allegations

In June 2024, a Chicago Tribune investigation detailed allegations from dozens of former Guaranteed Rate employees who described a pervasive toxic workplace culture characterized by verbal abuse, misogyny, sexual harassment, and intimidation. Former staff recounted instances of high-producing loan officers engaging in aggressive yelling, derogatory comments toward women, and a "sex-driven" atmosphere where professional advancement allegedly depended on personal relationships with superiors, including the CEO. Sources reported that human resources often dismissed complaints, prioritizing revenue-generating employees over addressing misconduct. These claims were echoed in a February 2024 lawsuit filed by former loan officer Megan McDermott against Guaranteed Rate and two male colleagues, alleging gender-based , unequal compensation compared to male peers, including unwanted advances, and retaliation for reporting issues. McDermott claimed the company fostered an environment where female employees faced systemic barriers, such as being denied leads or promotions afforded to men. An April 2024 filing further specified failures to pay commissions equally and subjection to a hostile environment. Guaranteed Rate has consistently denied the allegations, asserting in responses to the Tribune that the company maintains a positive intolerant of or , with no settlements of claims in the past decade. CEO Victor Ciardelli described the reports as unrepresentative, emphasizing the firm's values and internal investigations that found no widespread issues, while labeling the Tribune coverage a "hit piece." Employee reviews on platforms like have similarly cited from leadership and a high-pressure, unsupportive culture, though such anonymous accounts vary in verifiability. As of October 2025, no major legal resolutions or external probes have confirmed the allegations, and the company has initiated a effort to reaffirm its commitment to ethical conduct.

Responses and Outcomes

Guaranteed Rate issued a vehement denial of the allegations reported by the in June 2024, characterizing the article as a "hit piece" based on unverified claims from disgruntled former employees. The company emphasized that it had not settled any lawsuits involving claims in the past decade, attributing such assertions to isolated incidents rather than systemic issues. In response, Guaranteed Rate launched a effort, including an internal survey of over 80 current and former employees that reportedly yielded overwhelmingly positive feedback on workplace culture, with respondents highlighting supportive leadership and professional growth opportunities. CEO Victor Ciardelli defended the company's values publicly, reiterating commitments to while mobilizing the legal team to counter the narrative aggressively. Key investors, including executives Mike Golden and Thad Wong of @properties, publicly expressed continued support for Ciardelli amid the scrutiny, stating that the allegations did not reflect the company's operations or their experiences. The firm also accelerated initiatives to reaffirm its employee-first policies, though critics noted the need for substantive cultural audits beyond surveys to address underlying concerns. As of late 2024, outcomes remain pending for the primary workplace allegations, with no reported settlements or admissions of liability. A lawsuit filed in June 2024 by former loan officer Megan McDermott accused Guaranteed Rate and two colleagues of sexual harassment and gender discrimination, seeking damages for a hostile environment; the case is ongoing without resolution. Separately, a proposed class-action suit in September 2024 alleged unpaid wages under the Fair Labor Standards Act, unrelated to culture but highlighting employment practice disputes; it too lacks final adjudication. Historical legal resolutions, such as the $15.06 million settlement in April 2020 with the U.S. Department of Justice over FHA and VA loan origination violations, involved no admission of wrongdoing and focused on compliance rather than internal culture. These responses have sustained operational continuity, with no evident impact on market position or executive changes as of October 2025.

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