PATTY ARVIELO TAKES ON TOXICITY IN THE MORTGAGE INDUSTRY
THE
BROKER’S
BET
AUTONOMY VS. AUTHORITY IN MORTGAGE LENDING
FROM BIRTHING ROOMS TO BOARDROOMS
DAWN NOBLE’S PATH TO MORTGAGE SUCCESS
MEASURE BY MEASURE
How PHIL CRESCENZO captures preferred lender fallout to thrive in any market
BREAKING THE BRO CODE
PATTY ARVIELO TAKES ON TOXICITY IN THE MORTGAGE INDUSTRY
THE
BROKER’S
BET
AUTONOMY VS. AUTHORITY IN MORTGAGE LENDING
FROM BIRTHING ROOMS TO BOARDROOMS
DAWN NOBLE’S PATH TO MORTGAGE SUCCESS
MEASURE BY MEASURE
How PHIL CRESCENZO captures preferred lender fallout to thrive in any market
THE GAME OF INCHES
On any given day, Phil Crescenzo and his team are playing a game of inches — closing the deals others can’t. Like a seasoned quarterback, Crescenzo calls the plays that turn borrower rejections into homeownership victories. Discover how this Charleston-based team specializes in salvaging tough files and turning setbacks into success
Patty Arvielo, CEO of New American Funding, candidly confronts the toxic ‘mortgage bro culture’ that permeates the industry. Discover how her bold stance is empowering women and sparking crucial conversations in a male-dominated field.
6
From Gloom To Boom
Amid market turbulence, originators are rallying like joyful warriors, ready to seize new opportunities and steer the industry upward.
8
From TikTok To Triumph
LaDonna Lockard chats with Brandon Treadway as he reveals the underestimated power of social media, tips for finding your authentic voice, and strategies to enhance your reach and engagement. 12
Exploring the upcoming influx of loan officers as rates ease, and the dilemma of hiring for experience versus potential.
Dollars And Sense
Learn the art of balancing bonuses with meaningful recognition to ensure your employees feel valued and stay committed in a competitive industry. 16
Contractual Caveats
Discover how both buyers and sellers are being cornered by unfair agreements, and why experts are urging legal counsel to navigate these treacherous waters.
22
Your First Million Dollars: Pinning Down Sales Success
Discover why sticking to your sales strategy and following up repeatedly can turn a ‘no’ into a ‘yes.’
26
Benchmarks And Best Practices: Budget Boost
People on the Move
See who the movers and shakers are in the mortgage industry.
From debunking the 20% down myth to managing post-purchase expenses, learn how to be the ultimate resource for borrowers.
Navigating The Mortgage Maze
Whether opting for the autonomy of a broker or the control of a banker, success hinges on adaptability, strategic decision-making, and understanding the pros and cons of each approach.
46 The Midwife Who Masters Mortgages
Dawn Noble’s transition from midwife to mortgage powerhouse is a testament to her nurturing spirit and deep client connections.
Discover how she’s delivering both babies and home loans — and why she’s now the go-to ‘Mortgage Mama’ at Newfi Wholesale.
Facebook Thoughts: Orange You Curious?
STAFF
Vincent M. Valvo CEO, PUBLISHER, EDITOR-IN-CHIEF
Beverly Bolnick ASSOCIATE PUBLISHER
Volume 16 Issue 9
Erica Drzewiecki, Katie Jensen, Ryan Kingsley, Sarah Wolak STAFF WRITERS
Dave Hershman, Erica LaCentra, Harvey Mackay, Lew Sichelman, Mary Kay Scully CONTRIBUTING WRITERS
Alison Valvo DIRECTOR OF STRATEGIC GROWTH
Julie Carmichael PROJECT MANAGER
Melissa Pianin MARKETING & EVENTS ASSOCIATE
Navindra Persaud DIRECTOR OF EVENTS
Meghan Hogan DESIGN MANAGER
Stacy Murray, Christopher Wallace GRAPHIC DESIGN MANAGERS
William Valvo UX DESIGN DIRECTOR
Joel Berman FOUNDING PUBLISHER SEPTEMBER 2024
Krystina Coffey, Matthew Mullins MULTIMEDIA SPECIALIST
Andrew Berman HEAD OF CUSTOMER OUTREACH AND ENGAGEMENT
Kristie Woods-Lindig ONLINE ENGAGEMENT SPECIALIST
Nicole Coughlin ADVERTISING ASSOCIATE
Joyful Warriors
Just a few weeks ago, we wrapped up our annual Originator Connect conference in Las Vegas. This is the largest event for mortgage originators in the nation. But it comes after two brutal years of high interest rates pummeling mortgage pros and real estate professionals. If ever there was to be a doom-and-gloom event, this had all the external benchmarks going for it.
And yet, that wasn’t the case. In fact, the thousands who registered for the show came in high spirits, thronging the sessions, looking for new products, new approaches, sales wisdom, and advice from industry experts. They crowded into the exhibit hall so fast and full that it was hard to move about at times. They were looking for great products, new services, tech that could propel them further, and partners who could give them a leg up.
The mood, inexplicably, was joyous.
Let me correct that: inexplicable is not the right word. These originators were optimistic, they were prepared, and they were steeled. They understood that markets move, sometimes up, sometimes down, but inevitably they move. And since the mortgage market has been down so long, it’s only real direction now can be up.
At the beginning of August, a number of publicly-traded mortgage lenders released their second quarter earnings reports. Uniformly, they all showed improvement. Not just improvement in the bottom line, which can be brought
about by slashing expenses, but gains in origination volume, which can only come from making more mortgages. Those earnings reports were, also, ebullient about this sector’s prospects. And clearly the positive take on the market is not just spin, since the feet-on-the-street originators are reflecting the same sentiments.
It’s time, they seemed to say, to lock in new product lines. It’s time to look at origination opportunities. It’s time to capitalize on home equity loans. It’s time to go deep into reverse mortgages for clients. It’s time to better serve non-traditional borrowers with Non QM loans. It’s time to lay the groundwork to fully capitalize on a market that seems ready to advance, not retreat.
This is like an army readying for battle. First it strategizes, then it prepares, and then, finally, it takes action, its soldiers having been tested, trained and inspired. So, too, the origination community which appears to be done with waiting for someone (looking at you, Jerome Powell) to move the markets for them. They’re fighting to move it themselves.
So here’s to the industry’s front lines, the originators who are doing everything possible to overcome adversity, to unlock financial freedom for consumers, to find strength in resiliency. And to doing it all with good humor and faith in themselves. What did we see at Originator Connect? We saw joyful warriors who will win the day.
VINCENT M. VALVO Publisher, Editor-in-Chief
Submit your news to: editors@ambizmedia.com
If you would like additional copies of National Mortgage Professional, call (860) 719-1991 or email subscriptions@ambizmedia.com www.ambizmedia.com
SOCIAL SAVVY
Brandon Treadway on maximizing mortgage marketing with social media
In this episode of Maximum Conversations, LaDonna Lockard, CEO of Maximum Acceleration, sits down with Brandon Treadway, Director of Growth at SocialCoach. With a unique journey that spans mortgage education and marketing, Brandon shares invaluable insights on leveraging social media to its fullest potential. From the surprising power of TikTok to the undeniable impact of short-form video, Brandon uncovers strategies that mortgage and real estate professionals can use to boost their reach and engagement.
LADONNA LOCKARD: I’m here today with Brandon Treadway, Director of Growth at SocialCoach. Tell me a little bit about how you got started in the mortgage industry.
BRANDON TREADWAY: So I actually got started in the mortgage education space, working right alongside you. And that was an enjoyable couple of years, but I ended up finding my way out of mortgage and into the marketing space. I worked with a number of marketing agencies for a better part of the last decade, and then slowly found my way back into mortgage. So now I’m with SocialCoach as the Director of Growth. Our mission is to help mortgage and real
estate professionals to improve their reach and gain more leads from social media.
LD: I really like the approach that you’ve taken over the years, because I feel like you don’t just utilize one social media platform. You’re on all of them. What do you think is the most underutilized social platform by MLOs?
BT: The most underutilized platform is easily TikTok. And I know that when I say TikTok,we usually get a little bit of a recoil from people. “Isn’t that just a dancing app for kids?” That used to be the case, but post-COVID, it is the fastest-growing, most popular social media app in the world.
What makes TikTok special is its algorithm. TikTok’s algorithm understands its users incredibly well, based on the type of content that they use. If someone is looking for real estate, home buying, mortgage, credit repair, or other similar content, it’s so easy for a loan officer or real estate agent to find that person through video. And the reach can be insane. We have a number of LOs that we work with that are getting hundreds of thousands, sometimes millions, of views on their videos because they understand that and are figuring out how to hit that sweet spot. It takes a little bit of time and a little bit of refinement, but with consistency, there’s a really big ocean to be fishing out of.
LD: What would you say is something that LLs aren’t doing enough with their social media?
BT: Short-form video. Short-form video is the most pushed and most engaging piece of content on any social media platform, period. It doesn’t matter if it’s Facebook, TikTok, Instagram, whatever. The algorithms themselves push that video content more than anything else. And, statistically, people engage with that content at a higher rate than they do just text and images. Over 50% of people say they prefer to watch a video than read a text and image post.
LD: When we say short-form video, how short are we talking?
BT: 90 seconds is the sweet spot, particularly because that’s the maximum length for an Instagram Reel and it’s the perfect length for maximum engagement on TikTok.
LD: Something you do exceptionally well is keeping your authentic voice, even in social media across your dif-
ferent channels. You have content geared toward your work at SocialCoach, but then you also have something for your own personal interests. What’s your recommendation for someone like me, who doesn’t love social media but knows how important it is, to find my authentic voice?
BT: One of the biggest things that hurts a lot of creators is their inability to be authentic. I talk so much about consistency, because consistency is crucial to becoming comfortable with recording yourself and posting more. And the more your post, the easier it becomes to find your voice. I look at my content from a few months ago, and it feels and looks different to my content now because I was still figuring out how I wanted my content to come across to others and I cared how I looked on camera. Now, I’ve gotten to the point where I’m comfortable creating content and I don’t care so much about those things anymore, and that comes through repetition. Over time, you’ll work out the kinks and you’ll find your authenticity.
LD: Do you believe there are certain times to post that work better for the algorithm, or is everyone on social media all the time anyway?
BT: I think there’s two questions here: when’s the best time to post? And should you post to feed the algorithm?
My answer to the first question is, anyone who is telling you that there’s a specific time that you should post is lying to you. There is no best time to post. Everyone’s on social media 24/7. The only person who can tell when is the best time to post is you.
I have found the right times for me to post, and I’ve seen a difference in my
Short-form
video is the most pushed and most engaging piece of content on any social media platform, period.
engagement when I post earlier or later than this 1–2 hour range that works for me. I’ve learned this through my own experience, consistency, and utilizing my analytics. I watch for what times get better engagement, and fold that into my strategy. However, if you post according to what some website says is the best time to do so, you’ll still probably see some engagement because, like you said, people are on social media all the time. Just post when it makes sense for you.
The second thing is, don’t post for algorithms, post for your audience. When you post, you’ll find out what your audience is interested in. Continue to share the content that they’re engaging with, and you’ll find success.
Don’t worry about what the algorithm is doing.
LD: Do you use any external apps for analytics, or do you just rely on the data that you’re given within each social media app?
BT: I use SocialCoach to publish my content, and we have analytics built in. But when I want to get more granular data, I use the social media app itself for that information. For example, with TikTok I can see when my audience is online. By looking at TikTok’s data, I’ve learned that my sweet spot for posting is between 4:30 and 5:30 p.m. I get a nice bump of engagement posting then, and a good post will take off between 8:00 and 11:00 p.m. I can’t explain it, but I imag-
ine that’s the time when most people are lying in bed scrolling through social media before they go to sleep.
LD: Thanks so much for sharing your insights, Brandon. It’s clear that social media, when used effectively, can be a game-changer for mortgage and real estate professionals. Your tips on leveraging TikTok and the importance of shortform video are especially eye-opening. I look forward to seeing more of your innovative strategies in action.
Until next time, I’m LaDonna Lockard, encouraging you to stay authentic, consistent, and always ready to embrace new opportunities in your social media journey. ■
Enjoy more conversations like this one, watch Maximum Conversations in Minimal Time with host LaDonna Lockard, exclusively for NMP.
HIRING: BACK TO EXPERIENCE
A new hiring horizon as rates dip
TBY DAVE HERSHMAN, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
his summer, we have started what we hope is a long-term trend of mortgage rates decreasing. We have been waiting for this trend to start for quite a long time. The industry has endured waves of layoffs, company’s closing, and mergers during this era of higher rates. And with rates easing down, it is expected we will finally start growing again. That is very good news.
While we don’t expect the return of the pandemic induced boom times, we can expect a fairly robust refinance market, especially because rates have stayed higher for longer than we expected. Couple this with the additional detail that homeowners are sitting on a boatload of equity and will be ready to pare down debt or accomplish home improvements — we certainly can be more optimistic about the immediate future. We still have a long way to go, as we don’t expect rates to drop like a lead balloon — but the process has started.
Thus, we come back to the process of hiring. My guess is that there will be a host of “rebound” loan officers available when
things get better. Today they may be working selling cars or bartending but like lemmings they will return when the call goes out. What you might want to remember is that these are the loan officers that did not make the cut when we did the cutting. That does not mean that they were not decent loan officers, but no one was getting rid of their cream of the crop when we cut back.
Yet, because they have “experience,” they will most likely move to the top of the list when we are hunting for hires in the future. The question is: are we better off filling our needs with those who were average or less than average within the industry or should we look at those who have the potential to be above average or even top producers?
In this industry, we have a history of hiring experience over potential. Why? Because we don’t have the capacity to train. This fact always brings me back to my own story — several decades ago. I was working for a Congressman on the Hill. What you might consider a prestigious job. Hint: it wasn’t. I played racquetball with someone who owned a real estate company and the president of his mortgage company. They hired me to be a
loan officer inside a real estate office. I proceeded to close 600 loans during my first 18 months of closings — including 60 in my 12th month. If they did not know me from the racquetball court, there is no way they would have hired me. They knew nothing about my business acumen, intelligence or other attributes. They just knew I was aggressive on the court. If I had walked into ten mortgage companies and applied, I probably would have struck out because of lack of experience.
We have
a history of hiring experience over potential. Why?
Because we don’t have the capacity to train.
I am not suggesting that you hang out on racquetball (or pickleball) courts to recruit potential loan officers. I am suggesting that hiring the best person is a better objective than hiring strictly for experience. I can’t tell you how many times in this industry I have seen a manager hire someone because they had six months of experience — even though they did almost no loans where they came from, which is why they were looking for another job. These hires rarely work out.
Am I suggesting that we ignore the criteria of experience? Quite the opposite. I believe that experience is a key to any hire. But it may not be the same experience you are looking for. What experience is that? Stay tuned, as we will continue this discussion next month! ■
Dave Hershman is the top author in this industry with six books published as well as the founder of the OriginationPro Marketing System and the OriginationPro’s on-line comprehensive mortgage school. His site is www.OriginationPro.com and he can be reached at dave@hershmangroup.com
KEEPING YOUR BEST EMPLOYEES
The importance of recognition & rewards in the workplace
WBY ERICA LACENTRA, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
HETHER you have a team of one or one hundred, when you build out a great workforce and have competent, motivated employees, keeping those individuals happy is in your best interest, so they stay with you long-term. When running a business, you should consider your employees your most important assets and do what it takes to protect their well-being. If you have not thought about strategies to motivate and retain your top performers, then you are putting yourself at risk of losing people who, frankly, may be irreplaceable. So, in the highly competitive mortgage industry, where most employees are always looking for the next best thing, how can you develop a plan to recognize and reward your top talent?
WHAT REWARDS DO EMPLOYEES WANT?
When it comes to rewarding employees, companies typically
have two options, monetary incentives, and non-monetary incentives. A strategy that includes both types of rewards is often the best way to keep employee morale up and retain your top people. However, keep in mind that your company should actually develop a strategy to deploy both monetary and non-monetary rewards so that employees feel both acknowledged and rewarded at appropriate times within their careers.
For monetary incentives, you can consider providing employees with bonuses, salary increases, or even profit-sharing opportunities, if applicable to your company. Monetary incentives can provide a significant morale boost, especially when linked to exemplary performance, as they can serve as direct recognition for an employee’s hard work. Think of the appropriate timing for when employees would be eligible for monetary rewards, what criteria you are basing them on, and subsequently when the disbursement of these monetary in-
centives would happen throughout the year. For example, if you have Account Executives with quarterly goals, establishing quarterly monetary rewards based on meeting or exceeding those goals can help keep employees motivated to hit those benchmarks. Or in cases where you have project-based salaried employees, providing bonuses upon completion of a particularly large project can also be a great way to show them their hard work is appreciated.
It’s important to remember, though, that simply throwing money at your employees may not be the most effective strategy and would likely cause financial problems for your company down the line. In addition to monetary incentives, non-monetary incentives should be incorporated to allow greater comfort with your organization over time. So, what kind of non-monetary incentives should be considered? Think about all the potential perks that your employees can enjoy that will improve their work environment and general professional quality of life. Things like flexible working schedules, physical and mental health programs, mentorship programs and ongoing career education resources, and even smaller things, like hosting team lunches or breakfasts, can have a significant impact. When employees see that the company they work for cares about them at more of a human level they are more likely to show greater loyalty to that company and want to stay because their roles provide fulfillment beyond a paycheck.
Finally, simply providing employees with the recognition they deserve can go a long way to retaining your best workers. When employees feel unappreciated
or like a cog in a giant machine, it can cause them to seek other opportunities where their effort will be noticed. Think about creating employee recognition programs that scratch the human need to be appreciated for hard work. It could be as simple as recognizing top performers through a quick award ceremony on a monthly or quarterly basis, or holding more formal events to celebrate employee milestones and promotions. An employee recognition program can go a long way toward helping your employees feel validated for the contributions and hard work they are putting into your company.
A LITTLE RECOGNITION GOES A LONG WAY
The value that good employees bring to an organization is often understated, but if a top performer leaves, you’re sure to feel the void they leave behind. Taking steps to recognize and reward your best workers is such a vital piece of ensuring the longterm success of your company. Take the time to focus on a strategy that provides monetary and non-monetary incentives for your employees and know that a little appreciation not only goes a long way but will pay dividends overall. ■
Erica LaCentra is chief marketing officer for RCN Capital.
NEW REALTY PACTS FOUND WOEFULLY LACKING
Agreements called unfair, deceptive, and to be avoided
PBY LEW SICHELMAN, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
erhaps never has the term caveat emptor, or buyer beware, been more important in the housing market than it is now, a time when more and more buyers and sellers are being asked to sign what could be onerous and one-sided contracts.
On the buy-side, buyers are being asked to sign pacts linking them to the real estate agents who helped them find the houses they eventually buy. For the most part, the agreements are said to be so unfair that the Consumer Federation of America is suggesting that buyers might want to hire a real estate attorney and work directly with the listing agent rather than sign the contracts buy-side agents are handing them.
CFA has examined more than 40 so-called buyer-broker contracts from more than three dozen states, most of which were written by state Realtor associations, and found them
wholly lacking in consumer protections. In fact, most were written to protect the agent, not his client, CFA claims.
On the seller-side, meanwhile, realty firms are wanting sellers to sign listing contracts that seek to limit changes required in the settlement of the class action compensation suits agreed to by the National Association of Realtors and that took effect last month. They are so unfairly written that CFA Senior Fellow Stephen Brobeck is suggesting that sellers consider working with an attorney or consider using another listing agent, one whose contract is not so profoundly unjust.
Working with an attorney is the same advice Brobeck has offered to buyers who come up against unfair buyer-broker agreements. “The way most are written protects only agents and their brokers,” says Brobeck. If unfair provisions are not removed, he says, buyers should jettison their agents
and consider hiring an attorney and working directly with the listing agent.
MORTGAGE IMPACT
What’s happening in the real estate business is important to the mortgage sector because lenders could be the next target when it comes to their commission structures. Consequently, lenders, brokers, loan officers, and the like should be paying full attention.
One of the most egregious contracts is the one that was floated by the California Association of Realtors, one of the largest and most influential state groups in the country, according to an evaluation of the pact prepared by a New York law professor at CFA’s request.
CAR has since recalled that draft agreement and made many of the changes suggested by CFA. For instance, its latest version says nothing about cooperative compensation or commission sharing.
Nevertheless, the discarded contract represents the type of agreements being developed by other realty groups and firms, contracts that show, says Brobeck, a continuing effort “by the industry to thwart efforts by the Department of Justice to establish a more price-competitive marketplace.”
Over and above the CFA’s reading of buyer-broker agreements, the organization asked Tanya Monestier of the University of Buffalo Faculty of Law to evaluate CAR’s first run at its buy-side contract. And she found the draft to be “virtually unreadable. No layperson will be able to understand and appreciate the terms they are agreeing to.”
DIZZYING TERMS
In her evaluation of the compensation provision, Monestier concluded that the contract seems to “disguise the obligation of the buyer to pay his agent” and that it “telegraphs how Realtors plan” to circumvent the class action compensation settlement agreed to by their trade organization.
Realty as exemplary and says it could serve as a model for other groups’ contracts, noting it is “much simpler, clearer and [more] pro-consumer” than the CAR agreement.
“The contrast between the CAR and eXp contracts could not be sharper,” says Brobeck. “The eXp contract is written with the buyer in mind. The
example, it authorizes the listing agent to sign up unrepresented buyers who attend open houses. In other words, it functions to pre-authorize a conflict of interest that the agent could create.
Other “problematic features” of the withdrawn draft would have allowed agents to steer sellers in the direction of compensating buy-side
What’s happening in the real estate business is important to the mortgage sector because lenders could be the next target when it comes to their commission structures.
Under that settlement, as of August 17, multiple listing services must require buy-side agents to obtain signatures on buy-side contracts. Until now, such contracts were rarely required.
The law professor also identified problematic provisions in the CAR contract’s dispute resolutions section, dual agency, commissions owed, and buyer cancellations, among other provisos. Her recommendation: CAR should dump the contract “in its entirety” and start over by perusing “a buyer-friendly agreement that enables home purchasers to understand their rights and obligations.”
Not every new realty contract is worth trashing, though. The CFA holds out the buy-side agreement from eXp
CAR contract is written with the interests of the Realtor in mind.”
INDECIPHERABLE
Monestier also was asked to evaluate CAR’s first pass at a new listing agreement. While that document also has been recalled, it is worth knowing what the tenured law professor, who teaches contracts, had to say, for it, too, symbolizes the type of agreement being written by other realty groups. It isn’t pretty.
She called it unreadable and incomprehensible. “No seller will read this monster of a document; much less be able to understand it.” Should someone actually read the agreement, he would find it unfair, she said. For
agents, asked sellers if they would be willing to consider designating a percentage of the list price as a concession, and mandated mediation in the event of a dispute. The first cut at the apple also failed to lay out the seller’s compensation options, the law professor said.
Again, the two draft agreements have been taken down, replaced by more consumer-friendly pacts. But others may still be out there, and they could be terribly one-sided. For example, Florida’s new buyer-broker form was panned by one agent as “awkward and confusing to buyers.”
Offered the CFA’s Brobeck: “The agreements represent a continuing effort by the industry to thwart
the efforts of the Department of Justice to establish a more pricecompetitive marketplace.”
At this writing, the District Court in Washington, D.C., has denied NAR’s petition for rehearing in an old DOJ case, giving the agency the red light to move forward with its investigation of the class action settlements with those who believe they were cheated by the group’s cooperative commission protocol. Reportedly, the federales are still trying to decide whether the settlement goes far enough. If they decide it didn’t, they could pursue even more substantial changes to the costs associated with buying and selling a property.
CHANGES STILL POSSIBLE
Although the new compensation rules took effect last month, the full settlement won’t receive final approval until November, giving the Justice department 60 more days to decide if it wants to move forward and formally object. That wouldn’t necessarily negate the pact. But a judge could tell the parties to go back to the bargaining table.
Meanwhile, the CFA, an amalgamation of nearly 300 consumer-oriented non-profits with a combined membership of 50 million people, has vowed to remain the cop on the beat, saying it will continue to research and evaluate new buyer and seller contracts put forth by state and local Realtor association and other industry groups.
At the same time, the watchdog
group may have found a side hustle in reviewing proposed contracts. According to Brobeck, several real estate companies have asked the CFA to evaluate their agreements. And toward that end, the organization has developed criteria for judging pacts going forward. Among them, fairness and readability:
• Buyers should have the right to terminate their contracts with agents at no cost, just as those agents have the right to bugger out.
• An agent’s fee should be clearly stated, either as a dollar figure or an hourly rate. And buy-side agents should never have a financial incentive to be paid more the higher the sale price.
• Any additional fees should always be deducted from the commission paid on the sale of a property.
• Any seller concessions, including a willingness to help pay the buy-side agent, should be approved by the buyer and paid to the buyer — not the agent — to be used as he sees fit.
• Buyer contracts should not include mandatory mediation or arbitration clauses. Indeed, there should be no limitations on buyers’ remedies if they feel aggrieved. ■
Lew Sichelman is a contributing writer to National Mortgage Professional magazine. He has been covering the housing and mortgage sectors for 52 years. His syndicated column appears in major newspapers throughout the country.
PCV Murcor Pomona, CA
AREA OF FOCUS: Nationwide Real Estate Valuations Management — An Appraisal Management Company
DESCRIPTION OF PRODUCTS OR SERVICES: Licensed in all 50 states, plus D.C., PCV Murcor provides nationwide appraisal management and valuation advisory for residential and commercial real estate. With a foundation built on 43 years of experience, PCV Murcor brings a deep understanding of our clients’ goals that complements appraisal modernization. Our use of stateof-the-art AI technology ensures precision and efficiency in every aspect of our service. Experience innovation-powered recision and time-tested excellence with unparalleled service and cuttingedge products.
pcvmurcor.com sales@pcvmurcor.com (855) 819-2828
Find the full AMC list on page 66
HOW
Touchpoints Of Success : Mastering The Art Of Follow-Up BENCHMARKS & BEST PRACTICES
> Rocket Companies has appointed Heather Lovier as the company’s chief operating officer as of June 20. Lovier will replace Bill Emerson, but Emerson will remain Rocket’s president.
> Patrice Ficklin, who has led the Consumer Financial Protection Bureau’s fair lending office since its inception in 2011, is departing the agency to rejoin Fannie Mae.
> Georgiabased fintech Candor Technology has appointed Eric Rawlings as its new CTO. Rawlings brings over 20 years of IT leadership experience across multiple sectors.
> Dominion Financial Services recently announced the appointment of Dustin Wells as President of its newly established Wholesale Division.
// YOUR FIRST MILLION DOLLARS
KEEP CALLING, KEEP CARING, KEEP CLOSING SALES
Don’t forget your customers or they’ll forget you
ABY HARVEY MCKAY, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
small business owner was in trouble with her sales, so she decided to call in an expert to give her an outsider’s viewpoint. After she had gone over her plans and problems, the business owner took the
> John Brumund is back at Sun West Mortgage Company as Chief Production Officer.
> Sagent tapped bank and nonbank finance executive Jaime Gow as its Chief Financial Officer in July 2024.
sales expert to a map on the wall and showed him brightly colored pins stuck wherever she had a salesperson.
“Now,” she asked the expert, “for a starter, what is the first thing we should do?”
> Dan Jones has joined Mobility Market Intelligence (MMI) as its chief data officer after a 17 year tenure at Rocket Companies PEOPLE ON THE MOVE //
> Financial services compliance provider Winnow announced Chris Hilliard’s promotion to Chief Executive Officer. Hilliard previously served as Chief Operating Officer.
“Well,” replied the expert, “the first thing is to take those pins out of the map and stick them in the salespeople.”
In other words, get them off their duffs and out there selling!
I recently saw a statistic that said:
• 2 percent of all sales are made on the first contact.
• 3 percent of all sales are made on the second contact.
• 5 percent of all sales are made on the third contact.
• 10 percent of all sales are made on the 4th contact.
• 80 percent of all sales are made on the 5th-12th contact.
• Lesson: It pays to stay in touch with your customers.
> Rate, formerly known as Guaranteed Rate, and its CEO Victor Ciardelli, announced the addition of Daniel Manginelli to lead the company’s nationwide executive sales coaching program.
> Atlantabased LendingPoint named Shawn Stone as the company’s new Chief Executive Officer and member of the Board.
A florist celebrating the 100th anniversary of his business was asked why his company was so successful. He responded: “I have one employee responsible to send out reminders on who-sent-what-to-whom last year at this time and many repeat orders are generated by this simple call.”
Calling on customers multiple times is crucial for many reasons. First, it builds a relationship. The more you interact with customers, the more likely they are to think of you when they need a product or service you offer. Regular contact keeps you at the forefront of the customer’s mind.
> Jordan Higgins joined the team at AmeriHome as its Vice President of Correspondent Sales.
HAVE A NEW HIRE OR PROMOTION TO SHARE?
Submit the information to editors@ambizmedia.com for possible publication. Announcements should include a headshot.
TOUCH POINTS
Each call can provide more insight into the customer’s needs and challenges. This information allows you to tailor your offerings and demonstrate how your product or service can solve their specific problems.
Multiple calls give customers a chance to provide feedback on previous interactions, products, or services. This can guide your approach and improve customer satisfaction. Not every call will result in a sale, but persistence is a key in sales. It often takes several touchpoints before a customer is ready to buy.
One example that comes to mind is the story of a car salesperson who understood the value of building a longterm relationship with his customers. After selling a car, he didn’t just consider the transaction complete; instead, he followed up with a phone call to ensure the customer was satisfied with their purchase. This is a critical step because it shows the customer that their satisfaction is important, even after the sale is done
Multiple calls give customers a chance to provide feedback on previous interactions, products or services.
Timing is everything in life. Customers buy on their schedule, not yours. Frequent calls increase the chance that you will reach them at the right time: when they are ready to make a decision. Even if a customer isn’t ready to buy, they might know someone who is. Regular calls can prompt them to refer you to others.
TOUGHEN UP
In addition, repeated calls help you develop resilience to rejection. The more you call, the better you become at handling objections and learning from each interaction. Ten setbacks are the going price for any worthwhile win. Analyze every failure, but never wallow in one.
Restauranteur Barbara Smith said, “I have stood on a mountain of nos for one yes.”
Remember, the key is not just to call often, but to make each call meaningful and respectful of the customer’s time. It is about finding the balance between being persistent and being a nuisance.
But he didn’t stop there. He also made it a point to ask the customer about their usual car ownership cycle and promised to reach out again in the future when it was time for a replacement. This approach not only sets the stage for a future sale but also keeps the door open for ongoing communication and potential referral
Moreover, he offered an incentive for referrals that resulted in sales, promising to donate to the customer’s favorite charity. This not only encourages the customer to refer others but also aligns the salesperson’s interests with a cause important to the customer, further strengthening the relationship.
This salesperson’s strategy of multiple calls and thoughtful follow-up is a prime example of how persistence and genuine customer care can lead to repeat business and referrals, which are gold in the sales industry.
As sales strategist Rob Liano advises, “People don’t want to be sold, they want to be served.”
Mackay’s Moral: The fortune is in the follow-up. n
Harvey Mackay is a seven-time New York Times bestselling author with 15 books.
Events for mortgage brokers & originators
PASADENA, CA NOV. 5, 2024
YBUILDING BETTER BUDGETS
Be the financial guide your clients need
BY MARY KAY SCULLY, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
our goal as an LO is to profitably originate and close loans. Your privilege is helping your borrowers achieve the dream of homeownership. However, not everyone you talk to will be ready to buy at the moment they start talking to you. Having sufficient funds for down payments, closing costs, etc. is something for which many prospective buyers may not be sufficiently prepared.
If you’ve talked to borrowers that aren’t quite ready, how have you coached them on budgeting so they can be ready in the future? What resources are you providing to help them understand the costs they’ll see throughout the purchase process?
There are many costs associated with homeownership beyond the loan amount and interest rate. This month, we’ll dive into how you can help your borrowers understand what they need
to budget to not only buy a home, but enjoy it for years to come.
DOWN PAYMENT
Saving for a down payment can be daunting, especially for first-time buyers. How much do they really need to put down?
First and foremost, help your borrowers bust the 20% down myth. Especially with today’s home price appreciation, 20% down on even the most affordable home is still a large sum.
Private mortgage insurance (PMI) and down payment assistance exist to help buyers get into homes without the need for a 20% down payment.
Many times, borrowers can put down as little as 3% and still be able to purchase a home, but unfortunately many of your first-time buyers won’t know that. Make sure you’re clear
about the different down payment options available to borrowers, and to take it one step further, do your homework to understand which options will be right for them.
Even with down payment assistance, not everyone will be ready to buy immediately. There is a lot more that goes into budgeting for homeownership than just the loan
closing costs.
For your first-time buyers, this is another area where they’ll need some education on what to expect and how to budget.
Appraisal fees are usually around $500 for a single-family home, according to NAR . Rocket Mortgage says title search can cost between $75–200
It’s critical that you make sure your borrowers know to communicate any changes before close so that their new income can be reviewed and documented.
HOME MAINTENANCE
The costs don’t stop once the borrower gets their keys, either. There are many expenses that people don’t think about
Anyone who owns a home knows that the costs don’t end when you close, they are only just beginning.
itself. Be clear with your borrowers about the additional costs of buying and owning a home.
If they are not ready to buy right now, that’s okay! Continue to be an educational resource for them so they can prepare to buy with you in the future. The CFPB has a great resource you can share with borrowers about how much they truly need to budget for.
CLOSING COSTS
Of course, another cost of buying a home comes on closing day. Rocket Mortgage estimates that borrowers should be prepared to pay anywhere from 3-6% of their purchase price in
(or higher) and title insurance can range from 0.5–1% of the purchase price. These fees and costs can add up quickly, especially when borrowers don’t see them coming.
As you’re preparing your borrowers for closing, remind them not to take on extra debt during this time, as it can drastically change how things go at the closing table. Even if the loan has an affordable payment, any additional debt still changes their bottom line.
The same goes for job changes. Be clear that a new job means changes to the loan application — and subsequently to their closing costs if there’s a closing delay or a higher debt-to-income ratio.
but need to be prepared to spend money on in the weeks and months after buying a home, especially for those buying their very first property.
New homeowners will need tools, lawn care and maybe even appliances or furniture — and homeowners will need some savings for repairs when something related to the home inevitably breaks or needs replacement. Getting utilities turned on comes with startup and connection fees, as well. If the home is in a community with an HOA, that is another fee the owner must be prepared for.
Taxes and insurance may go up over time, also, adding to the costs that
owners need to be prepared for. While this is not a requirement for all loan programs, many of these costs are essential, so encourage your buyers to have some cash savings in reserve built up so they can address these additional costs.
Going above and beyond to help set your borrowers up for success can help set you apart from other lenders. Helping them get into a home is your job, but helping them stay in a home in a way that’s financially sustainable shows the value you place on the relationship.
Anyone who owns a home knows that the costs don’t end when you close, they are only just beginning. It’s critical that you help your borrowers understand how they can better budget to be truly ready for homeownership. Guiding them through the process even when they can’t yet be customers positions you to be their go-to resource when it’s finally time to buy.
As Dave Ramsey said, “Personal finance is 20% head knowledge. It’s 80% behavior!” So, let’s take action and help folks change their behavior and build wealth through home ownership. ■
Mary Kay Scully is the Director of Customer Education at Enact, leading the development of the company’s customer education curriculum.
LIGHTNINGFAST BadgeCreation
visit expotrac.com or scan this code
Registration management
Simplify & speed up check-in
Track attendance
Unlimited attendees
Priced for your specific needs
Up to 15 custom fields
Create custom badges
Cloud-based software
Personalized support
Created for, and by, event producers.
ExpoTrac was developed and tested by event producers, creating a tailored product that does exactly what it needs to: check people in quickly, and make it easy to manage. We traveled the country, using ExpoTrac at more than 60 of our own events so that we could design a system that not only works for us, but that we know will work for you, too.
No more hauling around large trays of name badges. No more hiding badges that haven’t been claimed. No more cumbersome lastminute changes to someone’s title, company or name. Our cloud-based system makes it all easy, simple and fast. And even better, you can run this system with one small printer and one laptop — and then add more users instantaneously as demand picks up at various times of the day.
There is simply no other faster, simpler, agile and economical badge printing system on the market today. We stand behind it, because we use it every day.
ENVIRONMENTAL RISKS AND RISING PRICES ARE SHAPING U.S. MIGRATION AND HOUSING MARKETS
, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
Recent data reveals that climate is influencing migration patterns in the United States, but in unexpected ways. Many Americans are moving to areas increasingly threatened by climate risks such as wildfires, flooding, and extreme heat. According to a 2023 Redfin report, high-fire-risk counties saw a net gain of 63,365
Texas is at the forefront of this trend, with 36.1% of new residents moving to its fire-prone counties, a significant rise from 28.7% in 2022. Despite its reputation for wildfires, Texas continues to be a top destination for newcomers. In contrast, California’s high-fire-risk counties experienced a net outflow of 6,937 people, reflecting growing awareness and concern about fire risks in the Golden State. Factors like escalating home prices and wildfire damage are contributing to this shift.
6,937
Florida remains a major draw for those moving to high-floodrisk areas, with 53.5% of the national net inflow heading there. However, this percentage has slightly declined from last year, indicating a growing awareness of flood hazards. Miami-Dade County, despite being a significant flood risk zone, saw a notable net outflow of over 47,000 people. This exodus is driven not only by climate concerns but also by rising housing costs and insurance premiums. The median home price in Miami has surged nearly 75% since 2019. As a result, nearly two-thirds (64.7%) of homes listed in June lingered on the market for at least 30 days without finding a buyer, up from 59.6% last year.
According to Redfin, June’s numbers mark the most significant annual rise in a year and the highest level
MIGRATING COUNTIES
36.1%
TX NEW RESIDENTS MIGRATING TO FIRE-RISK COUNTIES
June also marked the fourth consecutive month of rising home listings lingering on the market, leading to a growing accumulation of unsold inventory. This trend is largely due to buyers hesitating in the face of record-high home prices and elevated mortgage rates.
Watch it on 6,937
like Tampa (70%), Fort Lauderdale (77%), Jacksonville (70%), and Orlando (69%) are all seeing significant upticks in stale listings.
53.5%
FL NEW RESIDENTS MIGRATING TO FLOOD-RISK COUNTIES
Tune in to new epiosdes of Mortgage Meteorology every Thursday on The Interest for June since 2020.
Texas and Florida are experiencing the most intense impacts of this market slowdown. In Dallas, 63% of listings in June sat on the market for at least 30 days, a sharp increase from 52% last year. In Florida, cities
The increase in unsold inventory in these states is partly due to a surge in new home construction, adding to the supply when demand is cooling due to high housing costs, including rising insurance and HOA prices.
47,000
RESIDENTS MIGRATING OUT OF MIAMI-DADE COUNTY
Nationwide, over 40% of homes were on the market for at least 60 days in June, slightly higher than last year’s 38.4%. Despite the seemingly small shift, this marks the hottest annual increase in nearly a year and the third straight month of rising long-term listings.
Redfin suggests that unless there is a significant shift in mortgage rates or pricing strategies, the broader market may continue to experience this cooling trend.
“AArvielo Her Voice
New American Funding CEO "mortgage bro
BY KATIE JENSEN, STAFF WRITER, NATIONAL
s a female leader in the mortgage industry, I can assure other women out there that not all lenders exhibit the mortgage bro culture.”
Candidly addressing the prevalence of male toxicity in the mortgage industry, those words from Patty Arvielo, CEO and co-founder of New American Funding (NAF), sent shockwaves through the industry after she shared a video message with her 28,431 LinkedIn followers.
Men and women in the industry have harped on this topic for years, but it’s rare to hear the words “mortgage bro culture,” coming from someone in the upper echelons of the industry.
Using her power and influence as CEO of one of the top mortgage lenders in the country, Arvielo knew it would be more impactful to stand up for herself publicly so that every other woman in the industry could hear it.
However, even someone as powerful as Arvielo admits that it took a significant amount of courage and
Raises Voice
CEO stands up against culture"
support from her peers to actually release the video.
“I don’t know, I just was scared,” Arvielo told NMP. “But, we have to break through that fear. Only through repetition and only through it being normalized will I open the doors for all the rest of you to speak up on behalf of yourselves.”
Though the video opens by addressing the harassment she and her employees received from a competitor, Arvielo said in a later interview that she used that instance to bring a more pervasive issue to the forefront: women in the industry being bullied by men who have a toxic mindset.
More specifically, she believes this toxic mindset stems from a “win at all costs” mentality from ultra competitive people.
LEGAL INTIMIDATION
Many in the industry know — or eventually come to learn — that anyone can file a lawsuit for any reason.
A judge may end up dismissing the case, but the complaint still exists in the public record allowing companies to publicize potentially false allegations against competitors and damage their reputation. Essentially, this makes it easy for companies to spread rumors about competitors.
NMP’s own reader engagement data show that mortgage professionals
the first time she was sued.“I came apart. I was like, ‘Oh my God, it’s the end of the world,’” she recalled. “And I remember Rick, my partner and husband, said, ‘Babe, this is part of business.’ I’m like, ‘Are you kidding me? People use legal intimidation to control others?’ He’s like, ‘Yes.’”
Since then, Arvielo has dealt with her fair share of “frivolous” lawsuits, com-
More specifically, G-Rate alleges that NAF “raided” branches across the country and poached 30 G-Rate employees by using illegal compensation practices. G-Rate accused NAF of repeatedly violating Regulation Z of The Truth in Lending Act (TILA), claiming NAF originators would reclassify a self-generated lead as a corporate-generated lead to cut down their compensation to get a low enough rate to win
“I think the ones that will thrive will be the ones that are not talking negatively, because consumers will see it.”
love to indulge in other people’s drama by reading legal coverage. Lawsuits alleging bad behavior are some of the most highly trafficked stories compared to other industry topics like rate forecasts or even layoffs.
As someone who had never even gotten a speeding ticket before, Arvielo remembers how humiliated she felt
ing from other lenders. However, the lawsuit Arvielo refers to in her recent video was filed by one of the top 10 mortgage lenders in the U.S., Guaranteed Rate (G-Rate), over poaching allegations. The lawsuit garnered even more attention due to it being the first time a large lender has publicly accused a competitor of bribing originators with illegal compensation practices.
the client and eventually close the deal.
But, after more than two decades of being a CEO in this industry, Arviello isn’t intimidated by G-Rate’s lawsuit. Instead, she decided to control the narrative by using the lawsuit to discuss the overall issue she has with poaching allegation lawsuits.
“Using that tactic to keep people at their current employer is just wrong,” Arviello said. “So my message to the industry is there are a lot of U.S. employers that will protect you. I will, on behalf of employers, say there is a right way to leave an employer and there is a wrong way to leave an employer. Should you leave the right way, there is no reason you should be sued.”
G-Rate did not respond to a request for comment.
The point of making the video in the aftermath of this lawsuit, Arvielo says, was not to respond to her competitor’s poaching allegations, but to address the root of the matter: using bullying tactics to control competitors, especially women in the industry.
ALPHA TOXICITY
“Mortgage bro” and “mortgage bro culture” are terms that get thrown around the industry a lot, but lack a concrete and consistent definition. Arvielo characterizes “mortgage bros” as having a toxic, ultra-competitive mindset. She holds them responsible for perpetuating bullying and harassment against women in the mortgage industry.
“A large percentage of people in this industry have that toxic mindset. And I think a lot of it is driven by high levels of competitiveness — being so competitive that they need to win at any cost,” she said. Having been in the industry since she was 16 years old, Arvielo has had her fair share of run-ins with “mortgage bros.” But, one moment in particular has stuck with her throughout the years.
When she was just 26 years old, Arvielo worked as a loan originator at a Countrywide branch that, at the time, ranked
second among the all-time top-producing branches across the country. When the branch manager left, Arvielo thought she’d be a shoe-in for the position because she was the top producer at the branch. In the year preceding her branch manager’s departure, Arvielo said she worked constantly while raising her infant child and was preparing to deliver her second child. She eventually went into labor with her second child while at her work office.
Despite Arvielo’s work ethic, qualifications, and record of success as a top producer, she said Countrywide had a very hard time deciding whether to promote her. She was eventually able to obtain the position, though the delivery of the news was more lackluster than expected.
“I remember the man that came to the office because he basically was told that I was the person [to be promoted],” Arvielo said. “But, he pushed the paper across the desk, saying ‘This goes against everything I believe in, because you are not the right person. You have two babies at home. ’”
Arvielo said she out-produced everyone at that branch office, while raising her young children, and yet that was not enough to overcome the man’s bias towards women. But, time has granted Arvielo some perspective. She said that is the nature of a male-dominated industry.
“Let’s be really clear and honest about just workplaces overall. The corporate world was created by men and continued that way for hundreds of years,” Arvielo said. “Women at that time, just 50 years ago — and I’m 59 years old, so not that long ago — were intended to be at home.”
The “mortgage bro culture” may not
have been a bad thing when it was only men working together in the office, she continued, but as corporations and businesses evolve, it’s no longer appropriate.
Asked whether any retail professionals display this toxic behavior on social media, Arvielo said not really and she sees that happen more often within the broker community. However, she said it’s the same toxic mindset presenting itself.
“This whole social media strategy where they talk negatively about each other. I mean, you are who you hear [and] you are who you hang with,” Arvielo said, adding that some egotistical leaders in the broker channel perpetuate that toxic mindset and behavior, causing others to follow their lead.
“They may think they’re getting power over people,” Arvielo said, “but really we’re just kind of looking at them and being entertained. So, be careful who you follow. Be careful who you listen to.”
Because social media allows people to share ideas with one another across vast distances, that also makes social media a fertile breeding ground for spreading toxicity. “So I don’t think those environments thrive,” Arvielo added. “I think the ones that will thrive will be the ones that are not talking negatively, because consumers will see it.”
LONELY AT THE TOP
Of course, not all men bully women or try to dismiss their experiences of discrimination and harassment. In fact, Arvielo said lots of men strongly advocate on behalf of women, but she wishes women were just as loud when advocating for themselves.
“I always wanna champion men be-
“I’m not really a mortgage person. I am in the people business. ”
cause there’s so many male leaders that get it,” Arvielo said.
One advocate in particular has been a mentor to Arvielo throughout her career, Kind Lending CEO Glenn Stearns. “I didn’t have anybody to call 15 years ago,” Arvielo recalled. “There’s no other women. I wasn’t even friends with Maryanne, the former CEO of Guild, yet we became friends and then she retired,” she continued. “Glenn is my biggest cheerleader.”
In stark contrast to the “mortgage bro” mindset, Stearns adopts an abundance mindset, believing there is enough business to go around amongst competitors. Even though everyone is fighting for a bigger piece of the pie, he is not willing to hurt others to increase his share of the market, Arvielo said — and neither is she.
Despite the support she has, though,
“Do you know how hard it was for me to do that video?” asked Arvielo, rhetorically. “Like, for four days I couldn’t sleep because I knew the importance of my message. But, I still felt too intimidated … It’s just me being a woman leader and it is not normal for someone like me to speak up.”
Because the need to share her message outweighed her fears to do so, by sharing both Arvielo hopes other women in power will stand up for themselves. But, she said, there are so few women leaders at the top. Creating a welcoming environment for women in leadership should begin — not end — with calling out “mortgage bro culture.”
“These companies are being built on the backs of women. We lead operations. You can’t have sales without operations,” Arvielo said. “And I checked MMI data today, seeing 43% of salespeople are women. So, it’s still a very high percent
to own more of these companies.”
Arvielo calls on more women to speak up and share their experiences with more people in the industry, both men and women, who can become their advocates.
“Very few females in our industry are talking and speaking out,” Arvielo said. “I have a big weight on my shoulders, sometimes of the responsibility I have for all the young women rising in this business.” That’s why Arvielo creates change at her own company, where 50% of the people working in the c-suite and much of her sales team are women.
“I’m not really a mortgage person. I am in the people business,” Arvielo said. “It is my job to keep people happy. And it is my job to understand that the thousand-plus loan officers I have, every single one of them has an individual personality. That it’s my job to learn how to lead, not their job to
Creating a space for the next generation in NMLS education.
Introducing Maximum Acceleration, your new premier provider of continuing education.
We’re not just bringing you a lecture. We’re bringing you the fuel to spark your competitive fire, the plan to win the game on the merits, the confidence to know the rules and master them.
We’re Maximum Acceleration, and we’re where loan originators go to put their career in high gear.
— LaDonna Lockard, CEO
YOUR CAREER IN HIGH GEAR
Broker Mega Broker
Wholesale
Hybrid
Choose Wisely
From delegated authority
to
diverse models, originators face pivotal decisions in shaping their careers and defining their success
ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
n the realm of mortgage lending, the decision-making autonomy granted to loan officers is a privilege not universally bestowed. Regarding loan officers tasked with managing their own production, aligning with a specific mortgage company is a careerdefining decision. Some LOs’ resumes boast a diverse portfolio stacked with businesses of all shapes and sizes, from retail banks to brokerage firms, wholesale, hybrid and fintech. Others opt for a steadfast allegiance to a singular brand or model from the start to the end of their professional journey. There are mortgage bankers with and without delegated underwriting, mortgage brokers with no warehouse lines, mega brokers that are at least one-quarter wholesale with more than
250 active originators, and hybrid brokers that that have both delegated and non-delegated underwriting. both broker and bank loans.
In this mosaic of an industry, there are two unwavering truths: everyone has an opinion on the best route to be successful, and success in mortgage lending hinges on adaptability and commitment, regardless of the chosen model.
DELEGATIONS AND DELIBERATIONS
“I think it’s a matter of preference and there’s definitely pros and cons to each model,” says Eric Braun, senior VP of strategic growth at Contour Mortgage in Garden City, N.Y.. “I am of the mindset that to have creative control of the process and control on credit decisions them-
selves, I believe a delegated model allows us to do that at the highest level.”
Having delegated underwriting allows a lender to underwrite and fund a mortgage loan in-house, before review by any investors.
with certain files. In Braun’s case, it’s often for co-ops that he can get better pricing for out-of-house.
“I think it comes down to risk,” he says. “With low FICO Scores or higher Debt-toIncome Ratios companies might say, let’s be non-DEL on those particular scenarios.”
It can also come down to a company’s staffing focus. If they don’t have a VA underwriter in-house, for example, they might go nonDEL on a VA loan.
Delegated Banker Broker
“Since it’s our staff, in fire situations, we’re able to prioritize what we want to prioritize, rather than being at the mercy of another institution,” Braun points out. “When you’re not delegated, it does add a little bit of complexity to the conversation, like hey, we’re waiting for X, Y, and Z company to get back to us. It seems like you have less control over the process.”
A con to this model is that the company is taking on most if not all the risk, by issuing its own credit decisions. It also must maintain a certain net worth requirement to have the ability to do delegated underwriting. During times like these when the market is tight, that can be difficult for some lenders.
A self-described control freak, Braun still prefers the delegated model.
“Not to mention when you’re going out and trying to build a referral business,” he adds, “it may seem that you’re at the mercy of other institutions, their turnaround times and their decision-making. I’m not saying that you can’t be successful being non-DEL. But these things do come up when communicating with consumers and potential referral partners. And for that reason, I think the originator is empowered by being able to go out there as a delegated lender.”
Sometimes a lender chooses to go non-DEL
Nick Howley, senior LO with Green River Capital Corp. (GRC) in Plainview, N.Y., sees it through a different lens. As a licensed broker, GRC has no warehouse lines of its own, but access to about 50 different lenders. Oh, and also no in-house underwriting.
“Some people may use that as a benefit to go banker, but we do have direct access to all of our underwriters,” Howley says. “If a file comes in and I see the specific underwriter, I can reach directly out to that underwriter.”
Howley started his career over 10 years ago as a mortgage telemarketer.
“I realized very early that the cold calling model wasn’t for me,” he recalls. “I treat every single client like this is my last deal. No matter what, you gotta shine on that deal. You gotta show the listing agent, the buyer’s agent, the buyer’s attorney, the seller’s attorney and the client – most importantly – that they made the right decision going with you.”
He also acknowledges that there are pros and cons to all mortgage models.
“I believe it is not one-size-fits-all for each model, whether it be direct lender, retail
ERIC BRAUN
NICK HOWLEY
bank, wholesale lender, or mortgage broker. I believe in the mortgage broker model for myself because we have lower margins which give us more aggressive interest rates.”
RATE-BY-RATE
Large lenders compete for GRC’s business with interest rate offers. The company uses a loan servicing platform known as Loansifter.
“That gives us the availability to shop that client’s particular scenario between multiple different lenders,” Howley says. “And it allows us to be super-aggressive when it comes to interest rate.”
Of course, not every lender has an appetite for the same type of loan. Some spit out the lower-credit-score-FHA-types, while others can and will eat them for breakfast.
Broker-owner of Vogler Mortgage in Houston, Texas, Ben Vogler agrees that having access to a plethora of products from lots of lenders makes for a strong company.
“This flexibility allows loan officers to better tailor loan solutions to meet the unique needs of their clients,” he says.
That translates into opportunities for LOs to earn higher commissions.
“Commissions earned are typically paid sooner to the loan officer, bypassing the strict payroll cycles enacted by mortgage banking firms,” Vogler adds.
Once a file is clear-to-close, its review and approval can be expedited by that same LO.
“This control over the process provides a smoother client experience and fosters a greater likelihood the client will do business again with that loan officer and refer them to their family and friends.”
Owning a smaller firm, Vogler and his only oth-
Mortgage Models Explained Mortgage Banker
Mortgage Bankers originate loans and conduct delegated underwriting with servicing, and/or non-delegated underwriting without servicing.
Mortgage Broker
Mortgage Brokers originate loans, and are licensed as mortgage brokers with no warehouse lines of credit.
Mega Broker
A Mega Broker originates loans with 25% or more of their business in the wholesale channel and roughly 250 licensed loan originators, at least 100 actively originating. However, as brokerages continue to scale larger, the bar for being deemed “mega broker” rises.
Hybrid Broker
Hybrid Brokers originate loans, and broker loans with warehouse lenders and bank loans with a warehouse line. of credit.
BEN VOGLER
er LO enjoy the autonomy and independence of building their own referral networks and client relationships.
“Overall, he says, “working with a mortgage broker can offer loan officers access to a broader range of products, increased flexibility, higher earning potential, quicker paid commissions, and professional support, making it an attractive option for many in the mortgage industry.”
He generates his own business, with assistance on marketing and technology. This is in contrast to mega brokers that employ thousands of LOs.
“I tend to be very focused on my files, I attend my closings, and the loan officer that I have, I’m very hands-on with his transactions and assisting him in any way I can, from helping with group presentations to jumping in on a file that there might be some hiccups on.”
Just as some college students can thrive in a university setting, others prefer smaller class sizes and closer interaction with their professors. Especially when they’re just getting their feet wet in the lien pool, some LOs need more hand-holding than others.
“I think it’s imperative that they identify a company that fits their needs,” Vogler says.
“Working for a bank, when you close a loan, it may fall just outside of the last payroll period. So it could be another two to four weeks before you’re paid on that transaction. With a mortgage brokerage shop, we get paid at the time of closing. So at that time, we can cut a check to our loan officer for their work.”
As a mortgage broker with no warehouse lines, he works directly with a wholesale lender,
averaging 14 to 18 days from application to clear-to-close.
THE MEGA BROKER
The first time Kristine Wake heard NEXA’s CEO on a company call in 2020, she won-
dered if it was the right choice to leave the correspondent lender she had worked at previously.
“I honestly thought Mike Kortas was full of s**t,” says Wake, now director of NEXA’s training division. “I didn’t think he could deliver on the things he promised.”
The retail office she came from budgeted for its LOs’ marketing strategies, profit and loss reports and other expenses that come with the job. At NEXA that wouldn’t be the case.
“For me as an individual LO, I wasn’t benefiting from those items being taken care of on my behalf,” Wake explains of her job prior. “I benefited from coming to NEXA and being able to control the expenses I had. At NEXA I had the autonomy to choose what my expenses were.”
She finished out the year on a high note, earning more per loan than she thought possible.
“I ended up making quadruple with the same loans, the same volume and same clients the last six months of 2020 versus the first six months of 2020.”
She also wasn’t accustomed to having control over how her loans got processed, as the retail branch she worked at had a specific processor assigned to it.
“When I brokered out, I lost half my commission, which wasn’t very big in the first place,” Wake says. “If we needed a lock extension I had to go through my branch manager and
KRISTINE WAKE Mega Broker Hybrid Broker
JOSEPH SHALABY
she was not always readily available.”
That can cost an LO a deal, especially if they have to increase rate because they lost the lock.
“In the retail world, you are kind of held captive. You don’t have choices. In the broker world the lenders want our business, so they are always there to support us, be our partners…make sure the deal happens. Being able to not have to tell my clients ‘no’ was a huge win for me personally and professionally.”
There is a real fear among retail LOs that they won’t be able to make it in the wholesale market.
“The resource part of it was one of the reasons I stayed so long,” Wake recalls. “We were told this lie, if you go wholesale you’re on an island all by yourself. That was one of the biggest concerns for me leaving.”
She was pleased to find the opposite was true. NEXA provides its more than 2,300 LOs with around-the-clock assistance at LoanOfficerSupport.com.
The old-school, brick-and-mortar model of business virtually disappeared during the pandemic across most industries. With it went consumers’ blind trust.
“Our clients are more educated than they used to be,” Wake points out. “They understand that the interest rate has factors in it that change.”
Since consumers are savvier these days, LOs have to be, too.
BROKERING BETTER
Product availability and good pricing are par-
amount to Madison Mortgage CEO and President Shah Tehrany, of Lake Success, N.Y.
“We’re big on taking care of our clients and giving them a great experience,” Tehrany says.
“Some of the retail competitors of ours, their rates are a lot higher, because they have a lot of cost and infrastructure. Our pricing is exceptional, predominantly because the wholesale channel has exceptionally good pricing. Our capacity to execute is tremendous. Our company is really just structured around enormous support for loan officers, to maximize their efficiency.”
Madison Mortgage employs about 40 active originators, including LO assistants (LOAs) who work in a support capacity. Being 100% wholesale, the company brokers all of its loans.
Tehrany believes that the system – combined with the concept of quality over quantity –provides him the best business model to be successful.
“We’re not looking for hundreds of loan originators like some of these models,” he says. “We’re more focused on having great originators and putting a ton of support around them. On average, these guys are writing 120 transactions a year.”
Harnessing the resources of a mega broker can be essential to success for some companies.
“A lot of these small brokers are dying and they need a life raft and companies like ours are throwing them,” says E Mortgage Capital CEO Joseph Shalaby. “A broker is better being independent, piggybacking on a massive ecosystem like ours or any of the big 10. We can help with marketing, recruiting, training, coaching, driving innovation, sales training, etcetera.”
At the end of the day, it’s not where an LO finds their footing, but how strong they can stand.
“A good originator is going to be a good originator regardless of the model,” Braun says. “There are pros and cons to each of them, and I think you can be successful in all of them.” ■
SHAH TEHRANY
TRANSPARENT PRICING. EXPERT SUPPORT.
NO add-ons to pricing based on property type, credit score, LTV or transaction type.
Wholesale Loan Features:
Up to 90%1 CLTV for loans up to $3.5 million
Fixed-rate loans, ARMs and HELOCs available
No seasoning period or limits for cash-outs2
Available to LLCs and Revocable Trusts
FICO ® score only required for PMI loans
O nly one appraisal report regardless of loan size
Third-party processing service, wemlo, empowers mortgage professionals through transparent, flexible, and efficient loan processing. To better serve our customers and their borrowers, wemlo proudly offers processing support in 47 states (plus Washington DC) for more than a dozen loan products including Conventional, FHA, Jumbo, VA, and Non-QM.
wemlo.io (866) 523-3876 info@wemlo.io
Licensed In: AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VT, VA, WA, WV, WI, WY
Zero 1 Solution LLC
Stockton, CA
Area of Focus: Software
1Solution Mortgage allows you to Originate, price a loan scenario with proposal, CRM, Marketing and more …
• Scenario
• Communication
• CRM
• LOS
• Essentials
• Marketing
• HR
1smtg.com (888) 458-0650
info@1smtg.com
Licensed In: All U.S. States, U.S. Virgin Islands
Find the full Originator Tech list on page 67
WHOLESALE LENDER RESOURCE GUIDE
ACC Mortgage
Rockville, MD
ACC Mortgage is the oldest NonQM lender that has never stopped lending in 22 years. We specialize in Bank Statement, ITIN, P&L, Foreign National and DSCR lending. Price, Product and Process are what make for Non-QM success.
ACCMortgage.com
LICENSED IN: AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, KS, MD, MI, NV, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, WA
Find the full Wholesale Lenders list on page 67
From Babies To Mortgages, She Delivers
Family-centered approach guides Honolulu’s Dawn Noble
▶ DAWN NOBLE, an Newfi Wholesale, was who ran an art gallery sculptures created by known as belly casts her here — as well as
ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
Babies Mortgages, Delivers
account executive at was previously a midwife gallery that featured plaster by expectant mothers, casts — one shown with as works by local artists.
The sensitive and compassionate touch that made Dawn Noble a sought-after midwife for many years translated well into her longtime success as a loan originator. Delivering babies and mortgages to some of the same clients rendered her the go-to mortgage mama. Since becoming an account executive at Newfi Wholesale in April, Noble, who lives in Honolulu, now considers herself “mama hen” to a whole new bunch — the company’s loan officers.
COMING UP IN THE BUSINESS
“As a loan officer, I also had AEs to bring my loans to and you get really connected,” Noble said. “Some of them, our children, have grown up together. I really love to be that person that they come to, to help them get what they need for their clients. I have such a deep understanding of what that is, having been a loan officer for so long myself.”
Noble grew up in Montana, moved to Hawaii after she got married, and was a home-birth midwife up until about 13 years ago when her youngest child — a son — was born.
Aside from delivering babies, Noble and her midwife partner ran an art gallery in Honolulu where they sold plaster sculptures created by expectant mothers — known as belly casts — as well as other works by local artists. One evening in 2003, two young men sauntered into the gallery and threw down over $10,000 on several pieces. As it turns out, they were LOs.
“They appeared to be in their early twenties and I was surprised to see them pay cash for these expensive pieces,” Noble recalled. “I asked what they did for work and one of them looked at me and said, ‘You would be great at my job.’ As a single mother of three little girls at the time, I was definitely interested in creating more income and stability for my family.”
She traded her regular artsy attire for borrowed businesswear from one of her birth moms for a job interview at AmeriQuest, where the LOs worked, and was hired on the spot. Rallying behind her were the birth moms, midwives, and artists she
calls friends, and Noble grew to become one of the company’s top-producing LOs fairly quickly.
“My community really helped me to get my bearings as a loan officer by caring for my children so I could work long hours, loaning me professional clothes, a decent car to get to and from work, and rent money for three months,” she told NMP. “I had the honor of rising to the top of the nation by the year’s end.”
FROM DOULA TO DOWN PAYMENT
After AmeriQuest closed its doors, she earned her real estate license. Her former AmeriQuest colleagues went on to form First Capital Group, which would later become Hawaii Mortgage Experts. She was an LO there and at MasonMac for a while, before becoming an AE at Angel Oak Mortgage Solutions in January 2023 and then onboarding at NewFi Wholesale more than a year later.
“A wonderful leader — John Wise — recruited me,” said Noble, referring to the EVP of Sales — National Production for Newfi Lending.
She battled breast cancer during the career transition but is now settling well into her new home.
“In a business dictated by the numbers,” Wise told NMP this June, “how many likes did you get on social media, how many units did you close, what was your volume last month … Dawn Alba Noble has always been focused on the heart of the matter.”
Each loan represents an individual borrower with a unique situation, Wise added, and Noble recognizes this fact. “Maybe they have been turned down by another lender. Maybe they are trying to buy their forever home. Maybe they are doing everything they can to create a future for someone else. Either way, she is always a reminder that this business is really not about the numbers, but about the people who work for Newfi and the individual borrowers and brokers we serve.”
When loan processor Emily Daley transferred from Maine to Hawaii with Ameriquest Mortgage, she found an instant and lifelong friend in Noble.
▶ NOBLE, pictured here with her three daughters, considers her children her greatest pride. They share a bond as strong as the connections she’s built in her career. Once a sought-after midwife, Dawn now nurtures a new family of loan officers at Newfi Wholesale, embodying the same compassionate touch that helped bring both babies and dreams of homeownership into the world.
“Her and I clicked from the beginning; she was very welcoming, [and] confident,” Daley recalled.
She was particularly impressed by the way Noble conducted herself as a single mom and a successful business professional.
“Most people that work in an industry like this don’t know how to necessar-
and humbled to have been a part of both occasions for a special few.
“I feel my success (in mortgage) is due to the level of intimacy I was used to working with as a midwife,” she said. “I equated the confidence, privacy, and expertise between the journey of conception, pregnancy, labor, birth, and postpartum — the most precious experience in one’s life — to the journey of homeownership, as it is for most, the largest purchase ever made in life and highly emotional.”
“I like to be totally transparent. I really feel like that is something that goes hand in hand with my personal heart calling of delivering babies.”
> Dawn Noble
ily balance home and family life with business, and she is able to do that,” Daley remarked. “She is an exemplary example of what a mom is capable of doing on her own.”
When Daley was expecting her first child, Noble was there to guide her through every step of the pregnancy. “She’s just wonderful in so many ways.”
REFLECTIONS
Whether securing a home loan or bringing a baby into the world, Noble loves to help people define their human experience by guiding them through these milestone moments. She is proud
Getting a mortgage doesn’t have to be an intimate experience, but Noble makes it a priority to connect with her clients, whether it’s exchanging photographs of their children and grandchildren, or sharing memories and laughs.
Reflecting on young desires to save the environment and choices made that led her to here and now, Noble realizes it’s been her spirit driving all along.
“I was and I still am a very natural, organic person,” she said. “I really understand how to care for a family and emotion being the root of all things. We all have our own paths, our own journeys and it’s okay. It’s not right or wrong or good or bad. It just helps to have awareness about what you’re going through.”
She recalls the branches that grew from a connection made at a showing.
A realtor recommended Noble to her best friend who was buying a house.
“We started talking, and she’d had a very difficult time in between her first and second child — she’d lost children.
So we actually prayed together and just had a lot of consciousness around her pregnancy up until she gave birth. The day their mortgage closed I was there for the signing and brought a quilt I had made for her and the new baby.”
Theirs blossomed into a beautiful friendship. Noble was able to help the family refinance their home several times over the years, and they referred her services as an LO to family and friends.
“It really all had to do with that connection we shared,” she says. “I think the main thing that makes a person successful in the long-term in this industry is integrity. It’s honoring your word. I do my very best to under-promise and over-deliver. I don’t want to let anybody down. I like to be totally transparent. I really feel like that is something that goes hand in hand with my personal heart calling of delivering babies.”
If she hadn’t become a midwife she would “probably have 22 babies by now,” Noble says, adding, “I have really amazing children. I think that is the thing I’m the most proud of in my life.”
She can remember sleeping in front of the door of their apartment when her daughters were young and making peanut butter and jelly sandwiches for their dinner.
“I was just trying to find a way to meet all needs, including my own. I feel like the mortgage industry these past years has sustained me in meeting those needs. I’m looking forward to being in a transformational place in my position and in my finances, to really, really rise.” ■
THE PREMIER LENDING IN THE NORTHEAST
Do you have what it takes to be the best?
The New England Mortgage Expo returns to the fabulous Mohegan Sun Resort & Casino this January! With over 2,000 attendees, you won’t want to miss this opportunity to be a part of New England’s largest and most exciting mortgage event — the largest regional mortgage show in the nation. Join your peers for an exiting day of networking, product showcases, educational sessions, motivational speakers, and so much more!
Originators attend for FREE using code NMPFREE
LENDING EVENT NORTHEAST
How Phil Crescenzo captures preferred lender fallout, building a niche in new construction loans
BY RYAN KINGSLEY, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
NEVER SAY NEVER
NEVER
Any football fan, Al Pacino acolyte, or sucker for redemption-driven story arcs would recognize the rallying cry of 1999’s Oliver Stone-directed film, “Any Given Sunday.” The crux of a fist-pumping, foot-stomping, helmet-smashing half-time speech meant to unite a football team mired in self-pity, “life is a game of inches,” insists Coach Tony D’Amato, Al Pacino’s character.
“So is football,” he claims, “because in either game, life or football, the margin for error is so small — I mean one-half step too late or too early, and you don’t quite make it. One-half second too slow, too fast, you don’t quite catch it. The inches we need are everywhere around us.”
Phil Crescenzo, Jr., quarterbacks a small team, given his large reputation — just shy of a dozen people, or by his measure, just enough to field a football team. After more than two decades in the game, the Southeast Division Manager for Nation One Mortgage Corporation sees every loan file as a chance to run a play, each closing as a score.
“The next play you run could work,” he says about closing the difficult files in which his Charleston, S.C.-based team specializes. “It’s constant, rigorous, breaking things down, and analyzing, and not being afraid to take a little bit of a risk.” In this market, he says, too many lend-
ers are playing ‘prevent defense,’ and could lack the rhythm required to handle a surge in volume if rates drop measurably.
For Crescenzo, this down cycle differs from any he has lived through previously. Not only did the pace of interest rate hikes in 2022 and 2023 create earnings-to-expenses whiplash, but as borrowing costs rose, home price growth did not abate. Neither did Crescenzo’s production, though. As his competition feasted on refinances during the pandemic, he expanded his purchase base by focusing on his new construction niche.
As existing-home inventory dropped to its lowest level in decades last year, newly constructed homes became a bright spot for borrowers seeking more affordable options — or any options — amidst an ongoing affordability and supply crunch. When it comes to financing newhome purchases, preferred lenders eat the lunch of most originators by offering ample incentives on captive housing stock.
However, Crescenzo has built a business and a reputation for closing files — and saving deals — that preferred lenders cannot. “We help people when others can’t or won’t,” says Amanda Baker, Nation One’s operations manager for the Southeast region. “We are truly just working on hard files, doing hard things every day, and making it work. It’s pretty cool.”
Capturing ‘preferred lender fallout’ has proven to be a recession-proof business because there will always be deals that demand a second look. If mortgage loan origination is a game of inches, too, those builder deals usually fail by the hair of a too-low FICO or slight earnings gap.
“We might have eight different types of loan scenarios come through the door, and every one of these market conditions is hitting them differently,” says Crescenzo. “You have a veteran that just got back from deployment. You have a self-employed, small business owner. You have somebody that got their hours cut that was in manufacturing and was doing great in 2020–21.”
The “backlog” of prospective buyers who wish to buy newly constructed homes, but for one reason or another cannot qualify with preferred lenders, sport the bruises of damaged credit, unstable employment, or irregular income, to name a few knocks against their lendability. Originators and lenders rarely care to ask, “Why?”
“We know when we add up all those inches,” Pacino’s character says to end his half-time speech, “that’s going to make the f—ing difference between winning and losing! Between living and dying!” Does a borrower who missed a mortgage payment while out of the country for several weeks deserve a second look? How about a borrower who stepped away from their job for
six months to care for a sick family member? Are these hopeful buyers truly unfit to be borrowers?
Add up the inches, and in this market, the difference between working difficult deals or letting them slide is not only staying alive, or breaking even, but thriving. Some teams wait for the cream to rise to the top of their lead pools. Crescenzo’s does the difficult, curative work required to actively churn up business from that backlog of leads.
“I really truly think this is a niche,” says Baker. “Nobody else is doing this. Nobody else is saying, ‘Builder, give me all your turndowns and let me see what I can do.’” Crescenzo calls myriad reasons for rejecting borrowers “all these real-life scenarios.” Attending to those “real-life scenarios” of preferred lender fallout, his team plays a game of inches they haven’t lost yet.
NEVER SAYING ‘NO’
to a borrower sounds like the stuff of other film genres, like a horror picture involving a used-car salesman played by Edward Norton, or a crime-thriller exposing the grift of an unassuming accountant — also played by Edward Norton.
Embedded in Crescenzo’s team and now living just five miles from the Charleston home in which she was raised, Baker began a career in law before transitioning to real estate finance in 2012 due to the
STRIVING FOR A PLAN OR A PRE-APPROVAL, AND TAKING REJECTIONS OFF THE TABLE, IS THE OPERATIONAL PHILOSOPHY UNDERPINNING CRESCENZO’S STRATEGY.
ample opportunities to buy properties in post-Great Recession short sales.
Crescenzo moved to South Carolina around the same time, focusing on “one person and one phone call and one client, not blowing that account or opportunity,” he says. “People aren’t a number. They
don’t want to be treated like a number or feel like a number.”
Baker recalls the challenge of adapting her operations experience to Crescenzo’s strategy of never saying, ‘No.’ When she leaned toward rejections, he pressed her to consider why that borrower could not qualify. “What things would need to
change for it to work?” he would ask. Everybody’s always looking for “an easy loan” or “perfect credit score,” says Jason Husted, a real estate agent and partner of Crescenzo’s who relocated to Charleston from New York in 2015. He founded his Keller Williams brokerage in October 2017. “We never get a turn down,” he says. “We either get a plan or a pre-approval.”
Despite having no local contacts, Husted excelled as a single agent in Charleston, closing 33 homes in 2018, 59 homes in 2019, 76 homes in 2020, and 104 homes in 2021. Lacking referral sources to lean on, he focused on helping buyers who had been turned down repeatedly by other real estate teams, meeting Crescenzo through a builder’s referral.
Twenty-seven of Husted’s first 33 transactions Crescenzo turned around, putting together a credit plan for the borrower to eventually close. Some files needed a co-borrower. Some required credit repair or rescores. Some borrowers needed to work additional shifts to show more (and more consistent) income. Other borrowers had to increase their 401k contributions.
“It’s not if, but when,” Baker says. “Maybe things aren’t going to work out for you right now on this lot or this house, but in three months or six months, you can definitely do this.” Striving for a plan or a pre-approval, and taking rejections off the table, is the operational philosophy
underpinning Crescenzo’s strategy. Still, other borrowers need toughlove financial advice to align their budgets and ambitions.
“What’s worked for me is having those conversations, real conversations,” says Crescenzo. “We can break it all down and say, ‘Hey, listen, this auto payment is out of your budget. You shouldn’t be driving a car that was in Fast & Furious.’” Clients appreciate learning how the numbers work, and the breakthrough sounds like a borrower asking what their monthly payment will be.
Such hand-holding requires close communication with borrowers and coordination with referral partners. However, nothing guarantees a buyer’s loyalty after helping to improve their credit score or debt-to-income ratio. What helps are Crescenzo’s meticulous notes about clients’ birthdays, anniversaries, sick relatives, new babies, and the like. “You can see the look on their faces,” he continues. “They thought that whatever they came in with had to stay that way, and no one ever helped them.”
FOR TYPICAL HOME sale
transactions, a buyer goes under contract and the deal closes in 30 days. Where a typical real estate team might have 30-45 days of business lined up, “we have six months of business lined up almost every week,” Husted says. Crescenzo’s team is now
scheduling March 2025 closings. It may take three to six months to position a buyer to close on a home, but having a pipeline of those deals means Crescenzo and his partners can project earnings and business strategies two quarters ahead.
Harry Enquist has been selling newly constructed homes in the Charleston area for 25 years. Currently with DRB Homes, he remembers meeting Crescenzo 15 years ago. The community to which Enquist was assigned had sold only two homes in the past year. The buyers coming in had lower credit scores and incomes, and thus were getting turned down by banks.
“These are hardworking people that wanted to own a home,” Enquist remembers. “Phil said, ‘Just send me a couple of your files that have been turned down; let’s see what happens.’” When Crescenzo closed the first two, Enquist sent him more. They now have closed more than 400 deals together.
Eventually, Enquist’s buyers with credit issues were sent to Crescenzo, who put them on a credit plan. If the credit plan lasts six months, Enquist puts them under contract for a house that will take six months to build. If the credit plan is three months, he puts them on a house that is already framed. By focusing on the curative actions required by the borrower for approval, Crescenzo transforms today’s rejections into tomorrow’s closings.
Today, roughly 40% of DRB’s sales
go through Crescenzo’s team, or Nation One more broadly. “The whole attitude that we have together is anybody that comes in, you can buy a home,” Enquist says. We just have to figure out when it’s going to be.” That attitude propels what he calls “the conveyor belt” of new construction business. “When we’re starting new homes, new buildings, and they’re already sold, that’s a pretty easy build.”
People finally able to buy a home after receiving a string of rejections also tend to be the most secure under contract — and they give glowing referrals.
“We create so much more business from people that have been told that they can’t buy a home because of this or that, and now they’re actually buying a home,” Enquist says. “And then their friends are like, ‘How’d you buy that? We were told we couldn’t buy one.’ They come in as well.”
THE FURTHER one gets from production, the more expendable one becomes, especially in a down market, believes James Essen, Nation One’s national director of sales and growth. Essen recruited Crescenzo while responsible for the growth in sales for the California-based APM’s eastern division — a territory covering 29 states. Crescenzo returned to Nation One in November 2023 with Essen in tow.
“He came to me,” Essen recalls, “and said, ‘Hey, I’m going to Nation One,’
QUARTERBACKING A SMALL PEOPLE, OR BY HIS MEASURE, FOOTBALL TEAM — PHIL FILE AS A CHANCE TO RUN A
▶ TEAM CRESCENZO
SMALL TEAM — JUST SHY OF A DOZEN MEASURE, JUST ENOUGH TO FIELD A CRESCENZO, JR. SEES EVERY LOAN A PLAY, EACH CLOSING AS A SCORE.
“
NOBODY ELSE IS SAYING, ‘BUILDER, GIVE ME ALL YOUR TURNDOWNS AND LET ME SEE WHAT I CAN DO.’
and I was like, ‘Alright, well, I don’t really know what that means,’ and he’s like, ‘Oh, I misspoke. I’m not going to Nation One. We’re going to Nation One.’” Having been in the industry for more than two decades and hired “thousands” of loan officers, the opportunity to go with Crescenzo was “a unicorn opportunity,” he says. “When everyone else was struggling to do a fraction of what they did a year before, he’s continuing to grow 10%-15% year over year.”
Crescenzo’s focus on fundamentals fashioned him into one of the most knowledgeable people in the industry Essen knows. A common denominator between Crescenzo
and other top producers Essen’s met, “they legitimately love mortgages and they love helping people get loans. It’s his hobby, like he just can’t shut it off.”
When APM stepped back from some of the growth projects it had been pursuing in 2023, Crescenzo saw the need to produce for a smaller lender that would allow his team to “break all the systems” and “question every single thing” about mortgages. Crescenzo had produced for Nation One from 20122020 upon moving to South Carolina. He’s a custom overlay, there.
“The understanding that he has
with the owner of our company is, if we say, ‘Yes,’ that loan has to close,” explains Essen. For Crescenzo, his small team could have more impact at Nation One, which translates into greater operational control.
“To be able to say, ‘This is what’s happening. This needs to work like this and this needs to be done this way and it needs to be done this way right now.’ I have full control to do that,” Crescenzo highlights of enhancing his team’s reaction speed in a difficult market. “The bigger institutions have a difficult time doing that because it’s very expensive.” Greater operational control translates to cost savings on the production side.
The wisdom of his switch to Nation One shows in the success of the new model his team is developing. “We’ll probably break 400 units or really close in 2024,” Crescenzo projects. He hates sharing his numbers, thinking it tacky, but the industry keeps score. “With what I’m saving in the operational steps, some of the inefficiencies and time, I can go bring the business in.”
SO HE CAN operate from 30,000 feet, Crescenzo fields a team that is operations-heavy, including himself, Baker, and two veteran processors he calls, “strong enough to be underwriters.”
“A lot of times, the builder’s lender doesn’t say they can’t make it work until they’re less than 30 days from the closing day,” Baker says. The urgency required to save such deals demands operational soundness and efficiency. “When they put a file together, we know it’s going to be approved,” enabling the team’s onetouch approach to every file.
Specializing in deals that need either immediate salvaging or extended time and attention, Crescenzo’s business model is “very different” from those of her previous employers.
Day-to-day fulfillment and processing was run through the corporate office at her previous employers, limiting Baker’s impact as operations manager. “That was very frus-
trating for me as somebody who is, admittedly, a little bit of a control freak with that.” The loans she works now require granular knowledge of the underwriting guidelines and a direct line to the lock desk.
The number of management layers at APM, she says, increased friction for a team that thrives on speed and efficiency. Where it took a week to get through three levels at APM, one level in 24 hours is what she’s come to expect at Nation One. Their average number of calendar days from application to funding is 16-17 days. A quarter of their loans close in 12 days or fewer..
By working a diverse set of loans and trimming underwriting overlays to the bone, the expectation is that no one should touch the file more than twice. To “break all the systems” and “question every single thing” about mortgages, Crescenzo wanted to develop a process that traded on his reputation without diminishing it. A quicker review process, whereby Crescenzo “watches the gate,” allows him to assess the feasibility of every lead or application received.
“We’re just basically letting our processor own the file,” Essen says. “They know that a loan officer scrubbed it, they’ve reviewed it with Phil, and with Phil’s experience and track record, it’s sort of like having your big brother bring you to school.” No one will beat you up for passing along the file. “If we tell somebody in Charleston, ‘Phil Crescenzo said this loan is good,’
it’s like saying, ‘Hey, this guy’s a cash buyer. The money will be wired to your account next week.’”
While preferred lender fallout comprises anywhere from half to three-quarters of the team’s monthly volume, the calendar fills out with easier files, too. In fact, because their biggest builder client is having a “very down year,” according to Essen, the team has achieved a better loan balance, from fourfifths of their business being new builds to roughly two-thirds.
That better balance also reflects the rewards of the company’s reputation for closing difficult deals. The initial client on a deal may be the builder, but a buyer’s agent is attached in almost all of their transactions, Essen explains. Those buyers’ agents — like Husted — are sending more business. Further, as the company continues to perfect its model, Essen envisions potentially “franchising this out in other markets … continuing to target the same niche.”
Those are markets other originators could begin to tap for builder business. But, knowing when to compete and when not to compete makes Crescenzo’s group unique in its market. His team does not threaten builders’ in-house lenders because they punt those loans. “If it’s a loan they can do, we’re going to tell them how to do it and send it back because it would be a better deal for the client. If it’s a loan they can’t do, then we’re going to kill it,” declares Essen. ■
▶ MAJOR SINGLETON
BEFRIENDING BUILDERS’ SALES REPS
Though not many originators have figured out preferred lender fallout, Crescenzo’s team does not enjoy the niche by itself.
Major Singleton is a mortgage broker originating in the Dallas-Fort Worth area. After 23 years in the military, he retired from the U.S. Navy Reserve in 2021 as an Executive Officer at the Navy Operational Support Center in Pearl Harbor, Hawaii. Maintenance and drinking water issues on base prompted Singleton to invite a mortgage company to educate his sailors on how they could finance homes off base.
He began his mortgage career soon afterward, in late 2020, with American Pacific Mortgage Corporation (APM). “I was double-dipping in mortgages and running my command as executive officer, and I did extremely well.” In fact, the day scheduled for Singleton’s retirement ceremony had to be changed because he had three closings. Now with Edge Home Finance, Singleton exited retail in late 2021 because he was “getting his teeth kicked in” by brokers.
“Your ‘in’ with the builder is not with the developer or the big guy at the builder or whatever. Your relationships
come from the actual sales reps.” Courting those sales reps, he says, is not so different from courting real estate agents. They also enjoy Tuesday morning coffee and donuts. Emphasize your value to these reps: Brokers can close the deals that preferred lenders cannot.
Builders open a lending arm to have a secondary profit center, Singleton explains. “They’re not taking risk that is going to put the company in jeopardy,” such as offering unconventional loans or financing, or widening the credit box. “They’re less experienced than your independent mortgage broker … They don’t have access to the programs many other lenders do.”
Commenting on social media posts or driving by build sites to introduce himself helps Singleton forge these relationships. He visits sales reps’ offices when he expects they will not be busy with clients to ask questions about current and future projects, available inventory, price points, and the application process. To excel in this niche, brokers must learn the ins-and-outs of the new construction business.
Fostering relationships with multiple reps for the same builder grants Singleton access to different build sites. Because location and incentives make the difference for most buyers, access to a variety of build sites allows Singleton to match those preferences with his borrowers, while expanding his referral network for agent-partners.
Besides creativity, a broker’s greatest value-add is availability. A preferred lender typically works from nine to five. Most do not answer the phone on the weekend, says Singleton, who sees lower FICOs, immigrant borrowers, bank statement loans, and P&L loans for business owners and the self-employed. When a sales rep calls on a Saturday afternoon with a family interested in buying, Singleton sets the hook. “I’m like, ‘Hey, let’s put them on the phone. Can you put them on speaker?’” He proves his knowledge and availability to the borrower and the sales rep, who tells the preferred lender, “‘Your guy’s not available. This guy’s answering all my questions.’”
Working builders’ most difficult files, sometimes all he earns is his reputation. “I call them ‘Jesus loans’ because the only way you’re getting paid is if Jesus sees you doing it,” Singleton jokes. Still, closing the loan is paramount. Singleton recalls spending 60 days to close a new construction bank statement loan for a family in political asylum. He found just one lender willing to take the loan. “The sales rep calls me up and he’s like, ‘I gave you a hard time about getting this closed and everything, but the reality is you’re the only person that could have closed this.’”
One question Singleton always asks builders’ sales reps is how they get paid. Some reps receive half of their commission when they go under contract, while others do not see a dollar until the transaction fully closes. If the deal sours and Singleton’s phone rings, he knows a paycheck is on the hook. “If they fall out of contract, they have to pay that back to the builder because they didn’t close on that deal. They don’t get the other half until the deal closes.” Be tactful, but be strategic. Don’t ask how much they make — ask how the rep is compensated.
Any broker could do what Singleton does, he believes. Because only 10% of brokers actually will, he does not hesitate to share tips and tricks about his process. Singleton has even been solicited by sales reps to be their preferred lender. But, he has little interest in sitting in an office or losing his entrepreneurial edge. Through 2024, Singleton’s production has been roughly 25% new construction. That share is likely to grow as he sticks to a method proving successful.
“Many people do things just long enough for it not to work,” he believes. “Honestly, I probably have done 20 meetings with builder reps in the past six months because you have other business that you’re doing. I found a very good connection with two of them, and those two have referred me to other builder reps at their build sites.” One of them is a top producer at the build site because he leans on Singleton for tricky loans.
– RYAN KINGSLEY
Empowering Women In Mortgage
Welcome to
the
Mortgage Women Leadership Council
A warm welcome to you! I’m Kelly Hendricks, the Managing Editor of Mortgage Women Magazine and Senior Vice President of Delmar Mortgage, and it brings me great joy to extend this invitation to you. Throughout my career in the mortgage industry, I’ve been fortunate to have leaders and mentors who played pivotal roles in shaping my journey. I am thrilled to introduce a transformative initiative – the Mortgage Women Leadership Council, created by Mortgage Women Magazine.
In my role, I’ve experienced the challenges that women face in leadership within the mortgage sector. These challenges led to a profound realization — the need for a dynamic network to empower women in our industry. This realization is the driving force behind the creation of the Mortgage Women Leadership Council. I believe in the power of collective support, and I am excited about the opportunity to share and benefit from each other’s experiences.
Our mission is clear: to promote and empower women’s leadership in the mortgage sector. The council aims to create a supportive environment for professional growth, mentorship, and networking. Joining the
Our
council comes with various benefits, including networking opportunities and access to industry-specific professional development resources. We understand the unique challenges women face in mortgage leadership and have tailored mentorship and support systems to address them.
I invite you to join this movement to empower women in the mortgage industry. The Mortgage Women Leadership Council is committed to fostering a welcoming and supportive environment. Your involvement will not only contribute to your personal and professional growth but also play a crucial role in advancing women’s leadership in our industry. To join or get involved, simply click here to apply.
Thank you for considering this invitation to join the Mortgage Women Leadership Council. For further inquiries about the council and details on how to join, please contact Beverly Bolnick at bbolnick@ambizmedia.com. Let’s work together to advance women’s leadership in the mortgage industry — because collective action brings about meaningful change.
Kelly Hendricks Managing Editor, Mortgage Women Magazine
Our voices
As a valued member, enjoy these benefits:
Access to a Powerful Platform: Amplify your voice and influence through Mortgage Women Magazine, exclusive sponsored programs, email newsletters, and impactful events.
Editorial Opportunities: Showcase your expertise and insights through editorial features in Mortgage Women Magazine, gaining visibility and recognition among industry peers.
Awards and Recognition: Receive well-deserved recognition through our award programs, celebrating your achievements and contributions to the mortgage industry.
Community Support: Become part of a dedicated community committed to celebrating and driving meaningful progress in the mortgage sector. Connect with likeminded women leaders, share experiences, and foster collaborative initiatives.
Mortgage Women Magazine: Enjoy your complimentary digital subscription to Mortgage Women Magazine, the premier publication for women in mortgage. Read advice, learn about industry updates, and take in the inspiring stories of your peers.
Become a member today.
Join us and be a driving force in creating a more inclusive and thriving mortgage industry. Together, as a united community, we believe we can make real change.
Enjoy 1 year of your individual membership free! Use code MWM2024
mwlcouncil.com
5th Street Capital Inc.
Easy Street Capital
Your Non-QM Concierge offering Niche Solutions
DSCR, Non-QM, Fix And Flip, RTL, BRRRR, Short Term Rentlas
AZ, CA, CO, CT, FL, GA, ID, IL, IN, LA, MD, MN, MT, NV, NJ, NM, NC, OH, OR, PA, SC, TN, TX, UT, WA, WY 5thstcap.com
AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI, WY
easystreetcap.com
First National Bank of America Non-QM Lending All 50 U.S. States fnba.com/wholesale
Lendz Financial Non-QM Products AZ, CA, CO, FL, GA, IL, MI, NJ, OH, PA, TX lendzfinancial.com
AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, KY, LA, ME, MD, MA, MI, MN, MT, NV, NH, NJ, NM, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, WA, WI,
loanstreamwholesale.com
All 50 U.S. States nqmf.com
Nationwide mortgage lender and servicer, driven by technology and innovation. All U.S. States Puerto Rico U.S. Virgin Islands swmc.com
A&D Mortgage
A&D: Making homefinancing accessible through innovative products and superior customer service.
AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, ME, MD, MI, MS, MT, NE, NV, NH, NJ, NY, NC, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY
AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, KS, MD, MI, NV, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, WA
AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MI, MN, MT, NC, ND, NV, NJ, NJ, NM, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI loanstreamwholesale.com
IT’S AN ORANGE CONUNDRUM
Nick Roberson is a long-time mortgage industry veteran and a board member of the California Association of Mortgage Professionals. He’s a forthcoming and giving guy, who shares his … unique … perspective on work and life on his Facebook account. Here are some of Nick’s FB thoughts this month:
Ijust had a salesman walk up to my front door on a Sunday morning.
I could see his name on the I.D. badge he was wearing, and before he could start in on his sales pitch, I said, “Oh my gosh, are you Brian Halverson?”
He looked shocked and acknowledged that’s who he was. I said, “I’ve been trying to reach you about your car’s extended warranty.” He just stared at me for a moment, and then said, “You aren’t interested in solar panels, are you?” I said, “No, but aren’t you concerned about your car’s extended warranty? What if it breaks down today?” He shook his head, told me to have a nice day, and just walked away. I think I may be on to something here.
•
Don’t use the bathroom in your dream. It’s a setup.
•
How do you stop Canadian bacon from curling in your pan? You take away their little brooms.
•
My friend is great at selling home security systems. If people aren’t home, he just leave a brochure on the kitchen table.
• • •
Are oranges named orange because they’re orange, or is orange called orange because oranges are orange?
• • •
Babies are like the smallest, drunkest people you know.
• • •
Every McDonalds should have a flag they fly at half mast when the ice cream machine is broken.
• • •
Horsepower is how fast you hit the wall. Torque is how far you take the wall with you.
• • •
As cool as pistol shooter Yusuf Dikec was in his Olympics performance, he’s got nothing on my mom. Let’s see him barrel down the highway at 70+ miles per hour in an old-school 5,000-pound steel sixties American car while disciplining two young kids fighting in the backseat. My mom could separate us, make us sit
on our hands, and hogtie us with the seatbelts all while maintaining complete control of the vehicle and speed. Plus my sister and I were moving targets. Mom would have won multiple gold medals if they had an Olympic sport for that. She had incredible peripheral vision, cat-like quickness, and legendary reach.
• • •
Fruit cocktail: perhaps the most disappointing of all the cocktails.
• • •
At what point is it considered rude to pull out a bottle of ibuprofen if you don’t have enough for everyone?
• • •
The fact that Keith Richards has outlived Richard Simmons really makes me question this eating healthy and exercise thing.
• • •
As I was watching my neighbor’s dog chase his tail I thought, wow dogs are easily amused. Then I realized I was cracking up watching a dog chasing his tail. n
To see more by Nick, just go to facebook.com/nickroberson
Picture your dream home. Now look down. There’s a bright red line keeping you out. Join host Katie Jensen as we dive into redlining and the legacy of discrimination. You’ll hear first-hand accounts from those who’ve had to fight back to achieve their dreams. And we’ll challenge industry leaders on how to rewrite this legacy.
Listen by following the link or by subscribing wherever you get your podcasts.
