Seasoned head tapped to take the lead
Non-bank mortgage lender loanDepot Inc. promoted a seasoned industry veteran last week to head up its newly created role of vice president of National VA Lending – just in time for Veterans Day.
David Smith (pictured), a former sergeant in the US Army, will lead the lender’s VA Council, a dedicated group of loanDepot originators – many military veterans themselves – who will focus on serving the often-neglected segment of borrowers.
“We’re really going to focus on education,” Smith told Mortgage Professional America during a telephone interview. Informing consumers, raising the level of knowledge from every veteran and active service member out there and understanding what this benefit is all about, how it’s changed over the course of time and what makes the VA loan one of the most impressive mortgage vehicles out there – that’s what we’re going to focus on.”
In his new role, Smith will also continue to advance loanDepot’s extensive outreach to both the military community and industry professionals – both originators and realtors – to help them better understand and utilize VA mortgage products, he said. Over the last several years, Smith has trained more than 28,000 real estate agents and consumers on the nuances and benefits of the VA’s powerful home loan program, according to his bio.
Aside from his intimate knowledge of the military, Smith has had a long career in the housing industry - spanning more than 20 years, with roles in mortgage, real estate and sales/training roles with companies such as Prudential Real Estate, USAA, Wells Fargo and Mutual of Omaha. Smith joined loanDepot in 2022.
That training background will aid in his new role as he helps enlighten others on the benefits of a VA loan. “We’re going to continue to increase knowledge with our partners,” he said. “It’s something I’ve been passionate about for a long time. For 12 years, I’ve been in the training mode, teaching real estate agents all about the VA program and just how amazing it truly is.”
What makes the VA loan so great?
“One of the greatest things about it is some of the features that it offers and some of the features that it does not have,” he said. “The ability to get 100% financed with a VA loan makes it extraordinary in the mortgage world. But the fact it doesn’t have all of these extra fees such as PMI [private mortgage insurance] MIP [mortgage insurance premium] means that every single time I make a mortgage payment, more of my money is going toward equity – which means I’m building more wealth for me and my family. From a mortgage perspective, that’s what we’re really doing this for.”
He extolled the benefits of the VA loan in summary: “So 100% financing, incredible terms that are out there, backed by the US government, not having to worry about mortgage insurance. All of these things make a VA loan pretty extraordinary.”
The president of LDI Mortgage praised Smith in a prepared statement: “As a purpose-driven lender, loanDepot is incredibly proud to make the dream of homeownership a reality for thousands of military families each year,” he said. “We’ve developed a core strength in serving this particular community and now, with David’s expertise and leadership, we are poised to expand our positive impact.”
Helping military members resonates powerfully
The US Navy long employed a slogan that helped inspire many to join the service: It’s not just a job, it’s an adventure. Given his military background, the details of his new charge strike a similar chord.
“Serving my fellow veterans by helping them purchase their homes and build generational wealth is incredibly meaningful and personal for me,” Smith said. “Unfortunately, too many veterans, as well as too many real estate professionals, don’t have the understanding they need to successfully utilize VA loans. Our mission is to inform and empower so that more of our country’s servicemembers—who have sacrificed so much on behalf of our country—can take advantage of the powerful benefits of the VA mortgage program.”
Part of the challenge in educating on the VA loan centers on dispelling myths, Smith said. He acknowledged having been cheated on a VA loan himself when he first bought a home and was offered an FHA loan instead.
“The stigma associated with the VA loan is real,” he said. “It’s out there; I’ve seen it; I’ve lived through it. On the first home I ever purchased, I was convinced to go with an FHA loan because VA was going to be too much of a challenge,” he said. “That FHA loan ended up costing me a lot of money. I paid lots of fees that I shouldn’t have paid. I paid mortgage insurance for years. I shouldn’t have ever been subjected to that. That was actually the catalyst of why I do this.”
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