Rate provides mortgage coverage for first responder families

The latest initiative out of Chicago-based Rate is a complementary insurance policy that will cover the mortgage balance for families of first responders who die in the line of duty.

It is called 1stResponder+, featuring a one-year policy that is renewable every year that will cover the surviving family member's mortgage balance up to $650,000 and can be paired with conventional products as well as Federal Housing Administration, Veterans Affairs and U.S. Department of Agriculture loans.

The three eligible borrower categories for 1stResponder+ are law enforcement (police, corrections and Homeland Security); emergency medical service (including search and rescue and air ambulance); and fire service.

The coverage is underwritten by Zurich Insurance and is available in all 50 states and the District of Columbia.

"First responders are the backbone of our communities, putting their lives at risk every day to ensure the public's safety and well-being," said Victor Ciardelli, president and CEO of Rate (formerly known as Guaranteed Rate) in a press release. "The 1stResponder+ program is our way of saying thank you and ensuring their families are protected, should the unthinkable occur. This initiative reflects our gratitude and respect for these individuals."

Efforts to support family members of those killed in the line of duty include the Tunnel to Towers Foundation, founded by the family of a New York fire fighter killed on 9/11.

Among its missions is to provide mortgage-free homes to Gold Star (survivors of those killed in military actions) and fallen first responder families with young children, as well as building specially adapted smart homes for catastrophically injured veterans and first responders.

In September, the Foundation announced it provided mortgage-free homes to 20 families of first responders who died in the line of duty. This included the family of an Osage Beach, Missouri, police officer who died days before the announcement.

Another beneficiary was the family of a New York City Department of Corrections supervisor who died in 2023 from 9/11-related cancer. "Our family can now stay in the home where Jerry and I raised our children…Tunnel to Towers has given us the support and relief of financial stress, allowing our family to focus on rebuilding," said Johann Cariello, the widow of Capt. Gennaro Cariello.

Fay Servicing's annual corporate challenge included a donation from MFA Financial that will be sent to the Tunnel to Towers Foundation.

Affordability in general for public servants of all types has been a long-debated topic in the mortgage industry.

For example, a 2016 attempt to alleviate the impact of high housing costs for teachers and other school employees in California came from a down payment assistance program from the state's Housing Finance Agency.

Nationally, Public Servant Next Door, part of the Next Door Programs, offers grants and other forms of assistance to purchase a home.