During the mid-to-late 1990s, the mortgage industry experienced the precursor of the growth that would overwhelm it just a few years later. Many of those entering the sales side did so because of the possibility of making big dollars.
It was a negative reaction to that attitude that led Sherry Riano to enter the mortgage business in 1999, and she still has the same goals and principles of making sure she an educated client at the end of the process.
She said she started in the business “by accident.” It was at that time she noticed many people were being given mortgage loans were not necessarily the most appropriate product for them.
During that period,
“So I got really passionate about that, and that is really one of the reasons I am successful today. That is my goal whenever I speak to someone, is to understand what their long-term goals are.
“A lot of times I will turn people down and explain to them why they shouldn’t do a loan when I don’t think it is the right thing for them,” if it would harm them financially in the long-term, Riano explained.
When she started in 1999, underwriting had been loosened a little bit, but not as far as what happened when the industry was going gangbusters in the mid-2000s, “when we were just handing out money.”
Being direct and upfront with her clients’ results in even more customers seeking to use her services.
“People really do appreciate it because you are educating them, you’re not just selling them something. It is something I strongly believe in, is giving them an education so they understand all the steps and processes they’re going through,” she declared.
Riano has been at her current employer DNJ Gateway Mortgage, Raleigh, N.C., (which is affiliated with Gateway Bank, itself a part of HamptonRoads Bankshares) for 10 years. Her 2011 production was 200 loans with a dollar volume of $44 million. So far in 2012, she is already nearly equaled that $44 million dollar volume, with 173 loans closed. She does conforming and government loans.
With what happened over the past few years, Riano said she looks to make sure the loans she originates perform as intended, to the extent possible that an originator can control.
So she is very particular in making sure she has the right information from the borrower, reiterating that if she feels there could be a problem, she will not do the loan.
Riano says what she is really known for is for taking the time to speak with her clients one-on-one at the start of the process.
When she meets face-to-face with a client or speaks to them over the telephone—“I do a lot of my business by phone”—for the first time, “I go through the process, A-to-Z, explaining what the documents mean and how it could affect them.
“Our processes have changed so much. We went from basically, 'come in and sign your name and I’ll give you a loan,’ to where we’re back to the old-time lending,” Riano noted, where a loan being originated now has to be heavily documented.
Her higher loan balances are a sign of an improving real estate market, as people are buying homes again. Then again, the Research Triangle market in North Carolina probably fared better than most during the downturn.
In terms of marketing to her past client database, they get a monthly email from Riano, plus anytime that rates drop “and it would be beneficial to them,” clients are contacted as well. DNJ Gateway Mortgage specializes in doing no closing cost loans.
She noted she has worked with some of her clients as many as seven times over the past 10 years. “Every time I’ll refi someone I go 'I’ll never see you again, this has got to be bottom.’ We just haven’t hit the bottom,” she joked.
Riano is a native of the area, born and raised there; she and her husband Richard raised two kids there and are active in their church. These things also help to contribute to her success, she said. “I love this area, it is great place to be.”
The Raleigh-Durham-Chapel Hill metropolitan area has become a destination for people relocating for work related reasons. August data from the Triangle Multiple Listing Service found new listings in the region increased 7.5% to 3,240 on a year-over-year basis, while pending sales volume increased 26.4% to 2,310.
Inventory levels shrank 25.3% and the median sales price was up 3.8% to $192,100.
The bulk of Riano’s business is from the Research Triangle area, but she is able to originate loans up and down the east coast from Maryland to Florida.
Because this area fared better than many others during the real estate bust is another reason for Riano’s success, especially because of the relocation factor.
Another factor she attributes to her strong performance this year is the Home Affordable Refinance Program and the changes (HARP 2.0) which expanded eligibility.
Having DNJ Gateway being affiliated with a bank, as well having the entire origination process housed in the building she works out of is also an advantage.
She takes the application, underwriting is “down the hall,” closing is “around the corner,” and that is “very helpful through the process.”
Riano’s team consists of two loan officers and three support staffers.
The key is looking to keep the clients both happy and informed about with what is happening with their loan.
Besides at the start of the process, Riano speaks with them about midway through to give an update on the appraisal and a recap, and she also goes to the closing. Her assistants are available to speak with the clients during the process as well for updates.
As part of its consumer marketing, the company advertises on the local sports-talk radio station.
On the B2B side, there is a relationship with a local real estate firm, Fathom Realty, as well as a preferred lender relationship with SAS, which is a computer company based in Cary, N.C.
At the end of the day, though, it is about making certain that her clients are benefitting from her efforts.
“I’m passionate about helping people on how important the mortgage process is, and making sure at the end of the day that they had the best product available to them at all times,” Riano declared.
