Team Mortgage USA's winning formula is 20 years in the making
More often than not, those in the mortgage industry happened upon it by chance – by virtue of someone suggesting they’d be good at it, after watching a broker at work during a home purchase, or by some other circuitous path.
For Stephanie Salrin (pictured), it was simply a matter of joining the family business. “I grew up in the mortgage industry, you could say. My dad has been in the mortgage industry since he graduated college – since the 80s, so a long time,” she told Mortgage Professional America during a recent telephone interview. “He started as an underwriter, worked for a lender and then decided to start Team USA,” she said of the family business for which she serves as director of branch relations since joining in 2000.
The company is unique in that no actual loan origination is generated from the central office, but it functions as something of a platform supporting loan officers at its various branches. “It is very interesting being in my role yet not originating loans myself but knowing a lot about the industry and about our lenders,” she said. “From our corporate standpoint, we wanted it to be a platform where we supported our branches and not focusing on originating loans out of the corporate office. That’s kind of how our corporate platform is set up, which is unusual. You’ll typically find owners of companies still originating their own loans, but we wanted to have more of a support platform.”
A formula for success
The formula has been a winning one. As it happens, the family-run firm based in Bloomington, Ill., is celebrating a milestone in longevity: “We’ve been in business for 20 years this year,” Salrin said with palpable enthusiasm.
The firm has experienced steady growth since the patriarch founded it, now stretching across 14 states with 70 employees. Its reach is primarily focused in the Midwest, Salrin said, with a presence in Florida, Texas and Utah for added measure.
The platform model stayed intact even through the Great Recession of 2008, she noted. “What’s unique about us is we’ve been a mortgage broker since our inception. You don’t typically find that. “Being a mortgage broker has been very popular since around 2015,” she added. “It’s unique we’ve been a broker for the past 20 years.”
Not immune to industry shifts
Which isn’t to say they’ve been immune to the downshift in the industry what with inflation, higher rates, and dwindling affordability. To counter that, the company gives its loan officers space to navigate the market as they see fit while continuing its support role, she said.
“Our production is down,” Salrin acknowledged. “But brokers can roll with the wave a little more, they have that flexibility. At least for us, we allow our branches to be kind of set up with their own autonomy to run the business as they see fit – almost like their own business. There’s a lot of flexibility in being a mortgage broker.”
She noted how well her loan officers have been able to pivot to changing market dynamics: “The last several years, there was a lot of refi,” she said. “Now, it’s more focused on purchases and working with realtors. So you have that flexibility to kind of twist and change as a broker. For us, we’re seeing much less refi and more purchases.”
The rank-and-file also understand the need to ride out the current climate, she suggested. “There’s this kind of artificial market that we’re seeing right now with prices being high. People are not really selling because of the inventory of homes being at an all-time low. A lot of LOs have many, many buyers lined up ready to go; there just aren’t [enough of] the homes to allow them to keep moving.”
Yet this too shall pass, she suggested, perhaps by the second half of 2023: “I think it’s an artificial, pent-up market, but it’s slowly starting to break free,” she said. “We’re starting to see an increase in production across the board. So as that starts to roll, it will be a good second half of the year.”
Panic is anathema to her loan officers, who are focused on gaining market share in a slowed market. “For the best loan officers, this isn’t fazing them,” she said. “In the market of 2020, 2021, you saw an influx of people joining for the hype who are now leaving,” she said of the halcyon days of 2% to 3% mortgage rates and abundant opportunities for refinancing. “The good LOs, the good companies, know it’s cyclical and you just kind of ride the wave.”
Evidence of that shift is illustrated by the bolstered ranks at Team USA Mortgage: “We added a lot of loan officers to the team last year, and a lot of folks who worked in retail are moving to us,” Salrin said. “When things slow down, it’s a good time for loan officers to reflect on their business model, so we’re seeing a lot of movement from retail. A lot of folks who worked in retail are now moving to us.”
She credited the Association of Independent Mortgage Experts (AIME) with helping galvanize the independent broker community since its founding five years ago while giving the industry a voice. “We’re huge supporters of AIME,” she said. “I remember my parents talking about how nice it would be if we had the support that banks have.”
Entering its sixth year, AIME has spread the message about the advantages of working with a broker, which has benefited the industry in general and Team USA Mortgage in particular: “Mortgage brokers are the best for consumers – we save you money, we give you more options, we provide you with more programs to pick from, and we’re able to serve more borrowers. AIME was kind of born out of that need for unity among brokers, and they have really stepped up with that,” she said of the group’s messaging.
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