HOW TO CREATE A STRONG MORTGAGE BUSINESS THAT’S BUILT TO SCALE & BUILT TO LAST, W/ BILL LOWMAN

Building a successful mortgage company from the ground up is no easy task, especially when scaling from a few branches to hundreds across the country. The very idea of creating a nationwide behemoth from nothing feels like an impossible pipe dream. But even the largest banks were once a dusty little building on a quiet street. It CAN be done.

Even still, it’s fair to say that for every bank you know, there’s 100 that have come and gone. So how do some lenders achieve long-term success and crack the scaling code? We recently sat down with APM Chairman Bill Lowman for his secrets to success. Read the highlights of our conversation below!

TEAMWORK TRICKLES DOWN FROM LEADERSHIP

Before you even get into conversations about scaling, you have to understand that things aren’t going to happen without the foundations of leadership and teamwork. Doing things “the right way” isn’t about putting on a good face for potential customers. It’s the only way you’re going to succeed in the first place. And hitting growth milestones isn’t just about hitting numbers - it’s about having the right team in place to drive the company forward in a way that sustains that growth.

It’s also about knowing what you can do and where you can position yourself to best help the company. Just last year, American Pacific Mortgage brought in Ned Payant to be the new CEO and that was a real boon for us. It allowed me to focus on building a stronger team at APM. One or two people can only do so much, and if you can be comfortable with hiring people better than yourself in key positions, you’ll really see the benefits. And by understanding that you can’t be the best person for every role, you can empower leaders at every level - from LOs to executives - to take ownership of their position and have the courage and resources to make their own decisions. If you’re an “I” person, I don’t want you on my team. Strong businesses value teamwork, and that means putting the team first.

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10:36 - 11:09 -- "This is how I approach every interview I've done... I ask a question and my question is, "Tell me about your greatest accomplishment in your career." To be honest with you, I don't give a sh*t about what their accomplishment is. I have a notepad and I listen to how many times they say 'we' and how many times they say 'I'. And if they are saying 'I' way more than 'we,' they don't value the team and they probably don't work well within the team and I don't want them on my team."

OUR BUSINESS IS CLIENT-CENTRIC: DON’T FORGET THAT

Efficiency is great, tech is great. They can’t replace the personal connections that create customer loyalty. The most successful mortgage companies (and LOs) are the ones that prioritize building trust with clients. For borrowers, buying a home is one of the most stressful financial decisions of their life. Turn transactions into transformational experiences. Be available. Give advice. Show empathy. And work to actively add value to their journey.

A.I. IS GOOD, BUT THERE’S A CATCH...

Tech and AI tools are integral to today’s lending process - it’s as simple as that. If you’re not using them, the next guy is, and you will struggle to stay competitive. But it has to be balanced with face-to-face interaction. People buy from people, and there’s an inherent distrust when it comes to companies who outsource human contact to a machine. AI can streamline data entry and analysis, but it can’t replicate the trust that comes from a personal conversation. The challenge is how to use tech to ENHANCE relationships, not replace them. AI should be used to ensure compliance and quality. This can help LOs and customers, without taking away the human connection.

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13:44 - 14:05 -- "As a leader, don't hide. Put yourself out there, be communicative, be transparent, and let them know exactly what you're doing and why you're doing it. I think sometimes, leaders are afraid of sharing bad news and it's like, look, these people deserve to hear it, you know? They're trying to support their families, just like you are and I am. And they deserve to hear it."

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COMPLIANCE AND QUALITY ISN’T THE OTHER GUY’S JOB

Speaking of compliance and quality, if those two goals aren’t at the heart of your mortgage company mission, something’s wrong. Regulatory scrutiny from Fannie and Freddie are increasing all the time.. At APM, the compliance team isn’t wholly responsible for quality issues. As far as I’m concerned, every single employee is in compliance. This expectation creates a CULTURE of compliance that we want everyone to uphold. Getting everyone on board with this mission means you’re delivering the highest quality of loans, you’re reducing repurchases, and you’re protecting your reputation. This sort of compliance isn’t a burden. It really isn’t. Not only are you helping yourself, you’re helping the customer. Delivering loans that exceed standards tells your customer you’ll always do right by them. It’s more than closing deals - it’s staying compliant AND benefiting homeowners who need our help.

16:45 - 17:11 -- "We have an old saying at American Pacific Mortgage and that is "Turn the org chart upside down." And what does that mean? That means, you know, I'm the Chairman. I'm at the bottom. And who's at the top of the org chart are loan officers and loan processors. So whatever hierarchy you might see in a company that's maybe not in the mortgage business, you turn it upside down and I think that's huge."

ARE YOU READY FOR THE NEXT WAVE?

If there’s one thing veterans of the industry know, it’s that lending is cyclical. It goes down, it comes back up. The market has been brutal out there the last few years, which means both challenges and opportunities for lenders who keep their ear to the ground. I think we’ve reached the bottom of the current cycle and that it will rebound soon. But whether recovery is sharp or gradual remains to be seen. When times are tough, the best way to navigate the market is by leveraging the strength of your relationships. Maintaining strong partnerships with investors and warehouse banks will be critical when the upswing begins. The next wave is coming - that’s inevitable. The question is whether you’re prepared. Believe in yourself, stick with the fundamentals, and don’t let the noise of the market distract you.

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