Insights and strategies for sustained success in mortgage lending
Mortgage professionals often find themselves navigating through periods of abundance and scarcity, a scenario Angel Oak executive Tom Hutchens (pictured) aptly describes as “feast or famine.”
In this Q&A, Hutchens, a seasoned expert in the mortgage industry, shares his journey and insights on achieving long-term growth in this challenging yet rewarding field.
Mortgage Professional America: Can you give me an idea of how, when, and why you got started in the mortgage business?
Tom Hutchens: I got started in this industry in 1999 when a good friend of mine, who had been in the mortgage industry for years, invited me to join his firm. I was already interested in the mortgage business because I had found personal success in the real estate business as an owner and an investor.
MPA: What are some of the biggest challenges you have encountered throughout your experience in the mortgage industry?
TH: The mortgage industry is a very people-oriented business. One of the biggest challenges for a professional in this space, which is also the biggest key to success, is surrounding yourself with great people.
Another challenge of the industry is its cyclical nature. The idea of “feast or famine” has proven to be very true. You need to be adaptable to the ebbs and flows of the market if you want to succeed.
MPA: Name three career highlights.
TH: My first career highlight was my entrance into the business in 1999. I took a leap of faith, entering a new market as an independent salesperson. I started with a phone book, knowing no-one, and I was able to find success and build a growing business in a very short period of time.
The second highlight would be when the industry crumbled during the 2007-2009 recession. During this incredibly difficult time, I was able to reinvent myself by starting my own business as a real estate investor. From there, I was then asked to start and lead an appraisal management company.
My third highlight is my time with Angel Oak. This chapter in my career has been a huge success. The Angel Oak team and I started at zero, building a non-QM business from the ground up when the non-QM market was essentially non-existent following the Global Financial Crisis. From that point, we have grown our capabilities and experience within this space and become a forefront leader in non-QM.
MPA: What is your market outlook for the mortgage space in 2024?
TH: I am very optimistic about where the mortgage business is headed in 2024. Looking again at the idea of “feast or famine,” it seems as though the industry has been paying for its success in 2021, which was a record year. Spurred by COVID-19 and the Fed lowering interest rates to record lows, the mortgage market saw record high volume. In the almost two years since inflation, rising interest rates have put pressure on the entire real estate and mortgage industry. However, the industry has weathered the storm, and I anticipate we will see a more normalized market in 2024. Specifically, the expectation is that the Fed will begin lowering interest rates, and transactions will increase as buyers and sellers become more active.
MPA: As a seasoned mortgage professional, you’ve likely developed some effective strategies and techniques. Are there any particular practices or approaches you’ve implemented that have consistently yielded positive results for your clients?
TH: One of the most important values in the mortgage industry, or any industry for that matter, is the will to work hard. It’s a lesson I hold true for myself and one I instill in our entire team. The great thing about the mortgage business is that the harder you work and the more you invest in yourself, the greater your odds of success. Along those same lines, it is incredibly valuable to become an expert in what you do. I still learn something new every day in this business and am continuously furthering my expertise. It acts as a key differentiator in a competitive market.
Read next: Giving originators more tools to capture borrowers
MPA: What are your top tips for achieving long-term growth and sustainability in the mortgage business?
TH: With the mortgage industry being a people business, it’s critical that you always be honest. Honesty goes a long way in establishing integrity and transparency, both key traits for long-term and sustainable success.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
