Can You?

www.southeastmortgage.com Phone: 770-279-0222

Our Vision - Southeast Mortgage

www.southeastmortgage.com Phone: 770-279-0222

Discussion about Innovation & Adaptation - Cal Haupt

Technology evolution provides consumers with a choice on how they apply and partners with real & fast 15 minute approvals through innovative systems like GooRu.

Client's do business with a mortgage company the way they want, not how you want them to apply.

Realtors and Partners need to know their clients are approved prior to showing homes.  Southeast Mortgage provides the client and the Real Estate Professional with the technology they need and want.  The days of calling an Originator, waiting for a call back, waiting for the client to give the Originator the information, and then getting a pre-approval in day or two is the past. 

GooRu approves clients in 15 minutes.  Not Pre-qualify, GooRu approves right in the Partners Office or from the Client's Mobile Device by verifying with the IRS, Banks, and Credit Repositories providing a full AUS decision.

www.southeastmortgage.com Phone: 770-279-0222

Organic Growth Explained - Cal Haupt

Balancing client need and a Licensed Originator's career is critical to sustainable success and organic growth.

If you have experienced a decline in volume over the past few months, this video will explain how to grow during a slow down and avoid having to change your employer every few years.  

"25 years of success reinforces our philosophy's TRUTH." Cal Haupt, Chairman and CEO, Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com Phone: 770-279-0222

Empowerment is Actions not Words

We have all seen the posts about empowerment and fairness in the workplace.  Southeast Mortgage has shared that belief and made tangible strides towards that relevant outcome since inception.  I believe a picture is worth a thousand words. 

2018 Southeast Mortgage of Georgia, Inc. Officer Group

Since 1993, we have ensured all employees have the opportunity to be a shareholder (owner of Southeast Mortgage) and a path to earn the privilege of being an Officer of our company.

Southeast Mortgage of Georgia, Inc., SEM, is not owned by a Husband and Wife, LLC with a couple of partners, nor a Family.  Our Family is the Families of our Team.  Our 32 Officers provide the leadership at SEM.  They are a talented cross section of America that creates an opportunity for all employees to become our 34th Shareholder (Owner) or an Officer whether they joined our company last year or 25 years ago.  Skill, Belief, and Creating value for our Shareholders is an equal opportunity reality for all our employees.  Ambition, Skill, and Belief is the consistent measure of progression and success at SEM.

Other than being paid on your next loan or the salary you earn in operations, is there anything more than words at your current employer?  Your Sales Leader may have an ulterior motive, but you do not share that check.   What is your next step to accomplishing your goals and preparing for retirement?

Our Officers are tasked with executing the strategy for our Owners (Shareholders).  If you want real equal opportunity and want to join a great group of talented passionate leaders.  This is it.

www.southeastmortgage.com Phone: 770-279-0222

Imitation Reinforces Southeast Mortgage is Effective

I truly get excited when competitors copy or mock what we do.  We have always

chased the horizon with a mindful eye on sustainability and benefit to our Shareholders.  Every day we find a new island as we voyage forward using innovative and effective tools.

SEM Innovations & Difference:
> 20001- Internal Appraisal Management
> CRM - Image based highly customized art that creates new applications for MLOs at no charge.  Also, capable of targeting market opportunity daily.
> Social Based relationship development (Social MAX Offices)
> Employee Stock Ownership Programs (Not an ESOP! ESOPs cash out an existing Owner)
> Media Studio in house with Partner Image services
> Video based awareness media with proprietary outreach programs
> Powerful Social Media Presence - Simply Drives Traffic & Sales to our Partners
> Life / Work Balance Corporate Center
> Best in Class Builder / Realtor support proven to increase Partner Sales
> Employees that Retire comfortably - who retired from your company?

Lately I have seen videos with our Green Screen Studio, Better Camera Work than the Selfie from a car, Professional Editing, Southeast signage, Announcing a CRM (SEM started its CRM in 2003), Mobile Applications, etc.  Imitation is Flattery.  

The problem with Imitation is you have to be able to execute the cool stuff into a monetization strategy.  Its similar to those announcing the next new loan program that they may close one this year.  Its better for your Employees and Owners to focus on better delivery of the 99% of the products you actually sell. 

Imitation reinforces our leadership in innovation and ability to disrupt the status quo.  As long as I can remember, the Mortgage Industry in Georgia has been primarily non-risk taking followers that tend to only do what the pack is doing.  The 2008-2009 Implode List filled up quickly due to this herd mentality.

I have found this is a dynamic industry.  You have to steer daily and innovate monthly to stay fresh and relevant.  If you do it well, MLOs, Partners, and Clients all benefit.  The scenery is always better from the front of the pack.

You have to work with those that have attained the success you want.  Look at your manager's lifestyle?  Have they attained the success you strive for?  Are they moving from company to company?  If not, how can they show you the way if they can't find sustainable success?  Since 1993, Southeast Mortgage of Georgia, Inc.  25 years of Innovation and Success.

The front of the pack is a better view!  Make your move !

If your company is always talking about Southeast Mortgage, come visit us and learn why.  If your "LLC or Family Owned Company" is not prepared to share ownership or equity, there is a path to ownership at SEM.   

www.southeastmortgage.com Call US: 770-279-0222

SEM Rare Behind Scenes History Pt. 3 - Our Real Estate

This one is vary rare.  Probably 15 people have heard how the Club Drive Corporate site was found and developed.  Also I explain the decision to relocate to our newest 30,000 sqft Corporate Facility in Duluth is not what most people think.  When they get me talking about something I am passionate about, I never hold back.

www.southeastmortgage.com Phone: 770-279-0222

Untold History - Southeast Mortgage Part 1 - Cal Haupt

A walk around Koger discussing history and our preservation of our past for our future.  Our deep beliefs in doing the right things and respect off all living things is part of the compass that guides our daily decisions.

www.southeastmortgage.com

"Not What I thought I would See"

www.southeastmortgage.com 

Plan for Life NOT the MONTH

www.southeastmortgage.com

https://southeastmortgage.com/mymortgage/

Truth = Accurate Interpretation

Would you take a reporters opinion on your health or would you prefer to listen to a Credentialed Doctor who can interpret the various test data?

I am with you.  Reporters like to write about topics; however, the Mortgage Industry and the economic inputs that define the accurate path are complicated.  People with little else to offer forward biased and in some cases false interpretations of our true environment.

Did anyone see a family living under a tree on their way to work?  Does anyone know anyone having a baby?  Does anyone have kids in college or just graduated?

This is the organic growth of our industry that is exponential not cooling.  Cooling is a strange word with little to do with economics or social behavior.

The Reality is the Mortgage Industry is always growing and people will continually adjust their housing as their lifestyle changes.  Bigger, Smaller, Asset Allocation.  The available mortgage business just seeks the best providers that offer the best service and product fit.

"Cooling?" I suspect the reporter meant that consumers have had a great 2-3 years and are taking advantage of their good fortune and taking additional vacations thus shifting traditional perceptions of mortgage application behaviors.

Its your career and your life, get opinions from credentialed people with relevant experience.

Cal Haupt, Chairman and CEO, Southeast Mortgage of Georgia, Inc.

https://southeastmortgage.com/mymortgage/im-a-client/
www.southeastmortgage.com

Margin Compression Solution - Mortgage Industry

I spent the past few days analyzing the past five years financials and its relationship to secondary and the required fixed costs to originate and close prudent - compliant volume in today's mortgage industry.

Cal Haupt

Chairman & CEO

Margin compression or expansion is the relationship between the yields derived from closing loans and its associated expense.

Expense and Revenue still correlate at any volume with a given profit margin and distinct point of diminishing return.  Sales Culture creates a unique break even point and a point of diminishing return for each organization.

Margins Can Remain Constant

Expenses that do not facilitate volume increase your break even point and volume for volume sake without regard to the dynamic of your P&L creates a point of diminishing return.  Volume does not pay the bills, profit does.  

As a past Commercial Analyst for Banks, I have seen more companies grow themselves out of business than any other cause.  As companies strip their balance sheet to support the diminishing and or negative return from high concentrated volumes, they turn to layoffs to reduce cash burn or use 941 tax payments as a short term funding source since a bank will see the issue and not lend to them.  This is a lesson learned after its done and tends to be a terminal path for the Company doing it.

Sales Culture Determines Margin Integrity

Growth and Margins can Coexist

Sales Culture and Leadership's focus on a Prudent Sales Strategy is the key to long term success in the Mortgage Industry.  Due to available yields in the Secondary Market and Limited Non-Production Related Expenses to cut, the path leadership chooses will dictate the outcome for those who depend on their decision.  No matter how cool the ship you are on looks, ensure it is not taking on water in the lower decks.

I thought my analysis would return some cool algorithm for success in the Mortgage Industry; however, since Dodd-Frank was signed into law, the opportunity to balance inequalities on the P&L have been constrained.  Managing the inputs and outputs associated with a Mortgage Lender in today's environment create consistency based on the sales culture and vision of its leadership.  Conclusion: Sales Culture dictates profit margins in the Mortgage Industry.

www.southeastmortgage.com
770-279-0222

You and Your Family's Destination is our Primary Focus !

www.southeastmortgage.com

Be Ready The Signs Are Here - "Know your Company"

On Saturday mornings I like to catch up on the mortgage industry and assess what paths the various participants are following. Why? I have a passion for business case studies, predicting outcomes, and finding the solutions needed to create sustainable growth and profitable enterprises. 

The mortgage industry has been a fascination for me for over 25 years and the ability to survive and prosper in a regulated and sometimes interesting competitive response environment has stimulated my academic and athletic senses.

I think we are at an inflection point and employees in this industry should assess their career plan and ensure their pilot has made it through a few recessions.  Recessions cleanse weak business plans and reward those that are positioned properly.  This is why you need to understand what type of company you work for.

Digging into the quantitative side of a company is more productive than the informal qualitative input generally delivered from biased sources.  I think people spend more time researching the purchase of a new car than researching the company they intend to work for that will support their family.  Mortgage Companies can differ as much as a SMART CAR compared to FORD F350 Truck.  Automobile such as Mortgage Company have a wide range in definition.

Smart Car

Ford F350 Truck

Just because they are technically automobiles we all know how different they can be.  Its the same issue with Mortgage Companies, many people think they are all the same; however, they are extremely different if you know what to look for.  I am going to try to point out what the primary differences are.

In the mortgage industry, you have three types of strategy and three types of organizational structures for Non-Bank Mortgage Originating Companies. I have seen the same participants pre-recession three times with only one category of type and structure making it through all recessions assuming they respected Sustainable Growth Rates (SGR). As a reminder I attached a link to the implode list.  Note how many imploded in a short period after the recession was confirmed. http://ml-implode.com/fulllist.html#lists  Some of you may have worked for a few of these.  Hopefully, this blog will help you find a safe path through the next recession.

1. Momentum Players - These are the newly formed (less than 10 years) after a recession that grow rapidly with claims of unlocking the largest family reunion ever with no growing pains. They tend to grow rapidly (Pump and Dump) focusing on paths that create an exit strategy for the few founders (Sale, Public Stock Offering, Etc.)
1. Works fine as long as the economy is growing. If the economy turns down owners of an LLC have to use their own money to save others. Owner self-preservation ensures the company goes under and employees move on. Many momentum players are LLCs. LLCs collapsed fast in the 2008-2009 downturn.
2. Sustainable growth falls apart due to production at any loss mentality. They focus on national production comparisons rather than what if something slows?
2. Regional Legacy Lenders - These are the vertically integrated no debt / low debt mortgage originators that are long term players.  They follow basic sustainable business practices that are grounded in solid Sales/Production theory and have a diverse client base without concentrations.
1. No debt and Shareholder Cash on balance sheet is the bedrock that employees future and foundation is built on. If economy turns, all shareholders are willing to use company cash to survive and take advantage of LLCs going out of business.
2. They manage Sustainable Growth and monitor financial health of the company rather than focus on volume comparisons
3. Mom & Pop - These are the brokers that lease their funding, production, facility etc. Primarily a middle man/woman that have tight margins. These are the people who want to have freedom to do what they want with no responsibility if things go south. During 1997 - 2007, this was the largest sector in Non-Bank originators. Once the regulations monitored them with their tight margins and practices most closed down. Very few exist today and generally 1-5 people shops.
1. In a downturn, brokers simply work in other industries until the market is good again.
2. No regard for Sustainable Growth, does not apply

In the three types above, you will find one of three types of organizational structure below. Each have their own relevance to employees who work for them. Every employee should know what type of company they work for.

LLC - (Limited Liability Corporation) this structure is easy to form and is governed by an operating agreement that consists of a few members that draw up how they split up the proceeds of the company. There is no employee equity and the company only has a finite life. If a member dies or is purchased the LLC in its current form dies.  The Members tend to diversify into other ventures such as Banks, Fast Food "Zaxbys" etc., just in case their mortgage operation fails or has to dissolve.  Mortgage employees want their owners to focus on their livelihood and what pays their checks not a back up plan that they are not a part of.

Common Stock Corporation - this is a company owned by the shareholders and has perpetual life. This is what is traded on stock exchanges and your 401K and mutual funds are primarily invested in.  Employees can own this type of company and benefit from the growth they create.  Employee / Shareholders can ensure their leadership only focuses on their company.

Sole Proprietor - These are rare and unless you are a kamikaze, not a good idea. Owner has unlimited liability and does not share anything with employees.

100% Our Industry is made up of the above three types and the above three organizational structures. You pick the combination and it exists.

For those that have studied Finance, Accounting, Production Management, Organizational Management, and Psychology; the issues with each will pop out. Based on the above disciplines and business theory, the probable winning combination for the MLO and Employee is the Common Stock Corporation during a recovery or recession.

Companies that operate as a Common Stock Corporation with no debt, diverse client base, diverse geographic area, focusing on client need, Great Service, and sustainable fair pricing will prevail in recessions and recoveries. They may not be on TV as much, build cities, or venture outside their core business, but, they can provide an equitable rewarding career for the 98% of the employees that do the work day in and day out.

The primary factor that takes out the volume at any cost Momentum Players is ignoring sustainable growth rates which ultimately strips cash from the balance sheet.  As a result, LLC structures secure what they can and shut down.  2 + 2 has to equal 4 and those pricing like 2 + 2 = 10 will eventually pay the difference from their cash or liquidated assets.  We all sell the same commodity.

The sustainable growth rate (SGR) is the maximum growth rate a company can achieve consistent with the firm`s established growth plan and financial policy. Basically, it is calculated as:

SGR = (pm*(1-d)*(1+L)) / (T-(pm*(1-d)*(1+L)))

▪ pm is existing profit margin ▪ d is the owner payout ratio ▪ L is total debt to equity ratio ▪ T is ratio of total assets to sales

Size is not a Safe Haven when it comes to Sustainable Growth.  SGR efficiently ends big or small companies when not managed.  In order to grow faster, a company has to invest more Equity / Partner capital, increase its financial leverage, or increase the target profit margin.  Higher margins sustain steeper growth rates.  The key is to know when you cross the point of diminishing returns.  This is what many current articles in mortgage publications are referencing when the talk about tighter margins per deal and reduced profitability.  This is the "Be Ready" in the title.

SGR can remain in check if the company's business plans is prudent. Although more sales are good, you have to ensure you do not grow beyond your base or strip your balance sheet.

At the end of the day, doing the right thing for your family, clients, partners, and your employees is the measure of your impact on this world.

I hope everyone looks under the hood before buying the next shiny new car or company. Be sure it can get you further than a few blocks before you need another new car.

https://mymortgage.southeastmortgage.com/app/signup/partner/4TG89LNU

2018 Welcomes a new Era of Mortgage Origination and Partner Visibility (MLOs will Celebrate...)

Mortgage Originators best friend / Assistant. 

We expect our Team to increase applications by 50% with the same time commitment via SEM harnessing the best technology in the industry.  No time to market yourself?  No worries, GooRu will do it for you 24/7.

"We have been working on this concept and functionality for years.  Our mission was to automate the tasks MLOs did not like or did not have time to do while providing them self directed or corporate support to market via social portals developing new clients or to stay in touch with their past clients.  The result was better than we expected.  We found a way to accomplish our initiative to help MLOs accomplish more without more time and provide our clients and Partners the visibility and control they want.  This is a new unit at SEM separate from our historically effective Client Relationship Team but will work together to leverage our unique capabilities.  We will be launching GooRu at our Holiday Gala at the Ritz Carlton in December."  Cal Haupt, Chairman, Southeast Mortgage of Georgia, Inc.

Our Partners will enjoy the ease of staying informed and capturing more sales with higher confidence at their projects.

Here Comes GooRu....

We Can and will...

Give us a call 770-279-0222 and experience the Southeast Mortgage difference.

The true Reward of being in the Georgia Mortgage Industry

Southeast Mortgage Exceptional Loan Originator Service

 People always ask me why we have been in the Mortgage Industry so long. 

Many think it is ego, money, or power.  The Reality and those at Southeast Mortgage know its because of the passion, sense of accomplishment when we are ahead of the curve, and knowing we are appreciated for the hard smart work we do each day at Southeast Mortgage. 

Why are we strong and growing?  Our team cares and we believe in 360 Degree Service (Referral Partners - Clients - MLO - Operations).

JD Forwarded the email below to me last night from Pete.  This is what reinforces the reality of why MLOs, Realtors, and Builders want to work with our team.  When you take a super MLO like Pete Peters and provide him incredible service, he grows his business and accomplishes his career objectives.
_______________________________
Date: April 17, 2015 at 9:49:38 PM EDT
From: Pete Peters (Executive MLO | Sales Manager ) NMLS #245408, GA MLO #25209)

To: "J.D. Crowe" J.D.Crowe@southeastmortgage.com

Cc: Kelly Foltyn
Subject: This week

JD I had two tough loans this week that got closed. I could not have done it without the ladies on this email. They are the best I have ever worked with. A great team. Thanks for all of your support. We Can.

Sent from my iPhone

www.southeastmortgage.com
770-279-0222

Word of Mouth matters. Exceptional Service grows relationships and adds value to our partners!

Rodney Camren has been a friend to Southeast Mortgage and together we leverage each other's focus on Service and putting the client first.  Adding value and growing each others business is truly what a great relationship should be.  Call us if you do not have this type of relationship with your Lender.

Thank you Rodney for trusting us with your clients!

https://www.facebook.com/StarTeamAtlanta
http://www.atlantaluxuryhomespecialists.com/

Rodney Camren
http://www.atlantaluxuryhomespecialists.com/
 

Declined March Cal-Culator Breaks Record Run

Declined March Cal-Culator Breaks Record Run

Posted on April 7, 2014 by admin

     

After a sensational winter for the Atlanta residential real estate industry, the market has ended its record streak of two months consecutively reaching 6.0 and has declined to a 5.7 in 2014’s first spring month. Declining new, pending and existing home sales combined with negative home price gains contributed to the weakened Cal-Culator this month.

 

The U.S. Department of Commerce released its U.S. Census Bureau News for February, which showed that sales of new single-family homes in February were 3.3 percent below January. Though new home sales are only a small portion of homes purchased in the U.S., the sales represents a lot more.

“They [new home sales] provide a more current gauge of market conditions than some other indicators because they are tallied at the moment a contract is signed rather than at its closing,” said The Wall Street Journal in ‘New-Home Sales Fell 3.3% in February.’
The article also found that existing home sales, 90 percent of all home purchases, fell for the second consecutive month.

Pending home sales also fell 0.8 percent in February, marking the eighth straight month of decline, according to Bloomberg data. Pending home sales can be used to predict future home sales’ activity, as most pending home sales become existing home sales in a few months.

The latest S&P/Case-Shiller Home Price Indices indicated that a majority of the cities in the 20-City Composite saw declines in home prices gains, including Atlanta, which posted a 0.1 percent decline.
“The housing recovery may have taken a breather due to the cold weather,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Twelve cities reported declining prices in January vs. December; eight of those were worse than the month before.”

The National Association of Realtors’ 2014 Investment Home Buyers Survey conducted in March found that investment sales, a necessary part of the recovery, fell to 20 percent of all transactions in 2013, a drop of 8.5 percent.

“Investment buyers slowed their purchasing in 2013 because prices were rising quickly along with a declining availability of discounted foreclosures over the course of the year,” said NAR Chief Economist Lawrence Yun.

Despite the setbacks, the month did have a few bright spots. Nation-wide inventory is continuing to rise and now is at a 5.2-month supply, up from a 4.7-monthly supply last month. Though month-over-month home price gains declined, Atlanta experienced a 16.8 percent year-over-year change in home prices.

“Expectations and recent data point to continued home price gains for 2014. Although most analysts do not expect the same rapid increases we saw law year, the consensus is for moderating gains,” said Blitzer.

The next Cal-Culator will be released May 13 and will hopefully follow normal spring strides in the housing industry.

www.southeastmortgage.com
770-279-0222

JD Crowe - Next President of Mortgage Bankers Association of Georgia

J.D. Crowe

On May 17, 2014 JD Crowe will be installed as the next President of the Mortgage Bankers Association of Georgia, a trade association dedicated to the preservation and improvement of the mortgage banking industry.

JD Crowe is currently the President of Southeast Mortgage of Georgia, Inc. responsible for Licensed Mortgage Loan Originator Sales and Secondary Marketing.

"Mortgage Bankers Association of Georgia elected the perfect choice for their next President.  JD brings a wealth of knowledge to his position drawn from his experience in the Broker Industry, Correspondent Industry, and now from a Direct Non-Bank Lender's perspective.  This broad scope of knowledge will add substantial value to the membership." Cal Haupt, Chief Executive Officer, Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com

770-279-0222