In the latest episode of the Power House Podcast, house line CEO Clayton Collins speaks with Chief Strategist Craig Montgomery reduce and former chief production officer Cross-border mortgages. Collins and Montgomery discuss Lower’s growth plans, strategic partnerships, and how adopting an originator-first mentality will propel the company into the top five lenders.
Collins began the conversation by referring to Montgomery’s LinkedIn The title is “Shaping the Future of Mortgage Originator Success.” Montgomery prides itself on providing sponsors with the professional and financial support they need to achieve financial growth. He cited his past experience as a founder as a key factor behind his “founder-first” mentality.
Collins also noted that other independent mortgage banks may not take the same originator-centric approach. Montgomery reiterated Lore’s unwavering commitment to helping original creators, regardless of what competitors are doing.
“One of my main responsibilities is to make sure we have a platform that allows sponsors to be successful. A lot of times, managers and executives get lost in other things that may not be as important because ultimately that’s why we’re here,” Montgomery explain.
Montgomery asserts that what sponsors value most is support. Building a platform for sponsor success is critical because sponsors need strategies and resources designed to drive their success. Cultivating these resources for originators requires critical listening and understanding of the respective markets.
As Lower’s chief strategy officer, Montgomery focuses on decisions that impact production and drive the company toward its goal of becoming a top-five U.S. mortgage lender. The executive’s previous experience with CrossCountry Mortgage makes him a valuable asset to Lower’s growth.
Montgomery made recruiting a development priority for Lower. The goal is to attract the best original creators with high value propositions driven by the company’s online platform. Fortunately, Lower has the financial resources to make this happen, which is one of the reasons Montgomery accepted the CSO position.
Capable ownership was another factor that attracted Montgomery to Lower Downs. He said the company uses an executive-led approach with balanced oversight with ownership.
Next, the topic turns to exploring Lower’s unique banking structure and how it differs from traditional banking structures used by venture capital or lenders.
Collins highlighted Lower’s capital structure and its emphasis on strategic partnerships. Montgomery praised Lower’s team for using these partnerships to reassure sponsors with stability and security.
“If I’m a sponsor, I know I can lay my head on my pillow at night knowing that I have a financially strong company that’s backed by these partners,” Montgomery said, adding that sponsor support goes beyond Just capital structure and partnerships.
Support sponsors also need to listen to and understand their needs while communicating what Lower can provide from a technical, product, financial or operational perspective. Most importantly, Montgomery’s goal is for Lower to support sponsors’ professional and financial growth.
Next, the two discussed mergers and acquisitions as a key component of Lower’s growth strategy. Collins mentioned Lower’s previous relationship with Prosperity Mortgageis a Texas-based lender that rivals Lower in terms of loan origination volume. Montgomery praised the Lower team’s “seamless” integration of Thrive’s resources. He also stressed the importance of evaluating M&A transactions to ensure their purpose is clear, transparent and beneficial to both parties.
The episode concludes by exploring the impact of market conditions and how they impact sponsors. In a tough market, Lower’s goal is to provide sponsors with the tools they need to prosper financially, Montgomery said. Successful originators are able to maintain their loan volume regardless of interest rates and other external factors. Lower’s goal is to teach founders how to succeed by providing growth-only coaching and equal opportunity coaching.
