On a recent episode of the Power House podcast, HousingWire CEO Clayton Collins chatted with Craig Montgomery, chief strategy officer at Lower and former chief production officer at CrossCountry Mortgage. Collins and Montgomery discussed Lower’s plans for growth, its strategic partnerships and how it looks to adopt an originator-first mindset to push the company toward top-five lender status.
Collins begins the conversation by mentioning Montgomery’s LinkedIn headline, “Shaping The Future of Mortgage Originator Success.” Montgomery prides himself on providing originators with the professional and financial support they need to see financial growth. He references his past experience as an originator and cites it as a key factor behind his originator-first mindset.
Collins also mentions that other independent mortgage banks may not adopt the same originator-focused approach. Montgomery reiterates Lower’s steadfast approach to helping originators without regard for what competitors are doing.
“One of my main responsibilities is to make sure we have a platform that allows originators to succeed. Many times, managers and executives get lost in other things that may not matter as much as, because ultimately that’s why we’re here,” Montgomery said.
Originators value support above all else, Montgomery asserts. Building a platform for originator success is crucial as originators need strategies and resources designed to drive their success. Cultivating these resources for originators requires critical listening and an understanding of their respective markets.
As Lower’s chief strategy officer, Montgomery focuses on decisions that impact production and drive the company toward its goal to be a top-five U.S. mortgage lender. The executive’s prior experience with CrossCountry Mortgage makes him a valuable asset for Lower’s growth.
Montgomery establishes recruitment as a growth priority for Lower. The goal is to attract the best originators with a high value proposition driven by the company’s online platform. Luckily, Lower possesses the financial resources to make that happen, which is one of the reasons Montgomery accepted the CSO role.
Competent ownership is another factor that attracted Montgomery to Lower. He said the company adopts an executive-led approach with balanced oversight from ownership.
Next, the conversation shifts to explore Lower’s unique banking structure and how it differs from venture capital or traditional banking structures used by lenders.
Collins highlights Lower’s capital structure and its emphasis on strategic partnerships. Montgomery praises Lower’s team for adopting these partnerships as means of comforting originators through stability and security.
“If I’m an originator, I know I can lay my head on the pillow at night knowing that I have a company that is financially strong and supported by those partners,” Montgomery said while adding that originator support goes beyond capital structure and partnerships.
Supporting an originator also requires listening and understanding their needs while conveying what Lower can provide from a tech, product, financial or operations perspective. Above all, Montgomery’s goal is to have Lower support the professional and financial growth of the originator.
Next, the duo discuss mergers and acquisitions as key components of Lower’s growth strategy. Collins references Lower’s previous merger with Thrive Mortgage, a Texas-based lender that rivaled Lower in terms of origination volume. Montgomery praises the Lower team for the “seamless” integration of Thrive resources. He also stresses the importance of evaluating M&A deals to make sure they’re purposeful, transparent and mutually beneficial for both parties.
The episode ends by exploring the impact of market conditions and how they impact originators. In a tough market, Montgomery said that Lower’s goal is to give originators the tools needed to thrive financially. Successful originators maintain their loan volume regardless of interest rates and other external factors. Lower’s goal is to teach originators how to succeed by offering growth-only coaching and equal opportunity mentorship.
