This might be one of the strangest things I’ve ever heard come out of the mortgage industry.
And the mortgage industry is no stranger to strange things.
Chicago-based Rate (formerly known as Guaranteed Rate) has launched RateFit, a so-called “lifestyle brand.”
They were the 7th largest mortgage lender in the country last year, but apparently want to do more than just get you into a home. They want to dress you too!
Perhaps it’s just a really bizarre play on cross-selling a future home buyer customer by capturing them where they shop.
RateFit Is About “True Wellness” Beyond Just Homeownership
The new, rather strange clothing line called RateFit from mortgage lender Rate is about “true wellness,” in which “your financial, physical and mental health are in harmony.”
In the release, the company noted that they’ve already helped more than two million Americans get into their homes, and now they’re “helping them thrive inside their homes.”
So they appear to be painting the mortgage financing business as a mission, and to further their mission, Rate says it’s “building the world’s largest wellness community.”
Apparently that involves getting you into some yoga pants (or bike shorts) in some nice, earth tone colors.
The initial “drop” includes “a 14-piece debut collection of everyday performance wear for men and women.”
I checked out their stuff and it basically looks like clothes you’d find at lululemon or Vuori.
For example, you might be interested in their “Motion Top” or their “Power Short.”
It’s not bad looking stuff, but I’m still kind of confused as to why a mortgage lender has launched a clothing line to begin with.
Sure, they told us why. They want to touch every part of your life, but in terms of practicality, it’s a little bizarre. And even more than that.
Just like you can’t/wouldn’t get a home loan from lululemon. But I digress.
Is This Rate’s Play to Compete with Rocket/Redfin and Other Recent Industry Tie-Ups?
Given it’s not April 1st or anywhere near it, this is apparently real.
The one thing I could semi-liken this to is the recent trend of mortgage lenders scooping up ancillary companies like Rocket’s acquisition of real estate brokerage Redfin.
Or Lower’s acquisition of real estate portal Movoto.
Or perhaps the ongoing battle to acquire Two Harbors and its apparently lucrative mortgage servicing rights, currently between CrossCountry Mortgage and United Wholesale Mortgage.
The idea with all of those ventures is to extend their reach to capture more customers since mortgage is often a game of who is first. Or simply who is in front of you when the time is right.
I know, it’s a stretch, but it allows Rate to go beyond just doling out boring old mortgages.
And it could be the first of many different product lines aimed at getting their name out there via unconventional means, especially with young people who might one day become homeowners.
Or maybe just maybe it’s a marketing ploy and I’m foolishly writing about it and now you’ve heard of the mortgage lender Rate. If so, well played.
But who knows? Maybe it’s just a passion project being fulfilled by Rate founder Victor Ciardelli.
