Largest Mortgage - Real Estate Partnership in Georgia History (2026)

Two similar Cultures Aligned

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

2008 - Sub-Prime was unsustainable, 2023 - Bond Duration bets are unsustainable. Similar Outcomes

The mortgage industry is currently undergoing a significant transformation due to the rapid increase in the Fed Funds Rate since mid-2022, coupled with the industry's lack of compliance with prudent profitability objectives. 

All mortgage companies must comply with GAAP accounting and meet financial covenants to remain listed on stock exchanges, retain funding from banks, and maintain approval with Fannie, Freddie, and HUD "The GSEs."

When mortgage companies incur losses due to below market pricing believing it creates volume or they react slowly to align expense with margins, the equity on the balance sheet pays for the loss and misjudgment. 

The result?  Banks cease funding agreements and GSEs revoke approval status to sell mortgages once the tangible equity and financial covenants are not met.

Eventually, the balance sheet equity (shareholder's equity or LLC owner's cash reserves) will reach zero and the business closes or must sell its assets to a competitor for pennies on the dollar.

Housing Wire and other mortgage news outlets have been reporting these realities recently.

This shift is similar to the transformation that occurred in 2008-2009, albeit for different reasons.

Remember, prior to today the last highest Fed Funds rate was in 2007. We all know what happened after that. Poor business decisions were exposed as volumes fell 34%. Today you have a higher Fed Funds rate and volume has fallen 50% industry wide. Both were fueled by assuming risk using unsustainable assumptions in an effort to keep their volumes up. 

The upheaval has begun and has already forced many companies to close their doors, and one large mortgage originator is projected to lose $2 billion dollars in 2023, with only $500 million of their common equity remaining. Accounting matters no matter what size company they all will be held accountable.

Every company in the mortgage industry is unique, with different costs, margins, and opportunities. A one-size-fits-all pricing strategy "Follow the Joneses Strategy" is unsustainable, especially when it is based on bad or incompetent assumptions. Companies should balance pricing with the costs associated with their individual business to avoid another calamity like the one in 2008-2009. Does a Can of Coke cost the same at the Baseball Game as it does at a Convenient Store or Costco? No! they all have different cost structures and levels of service. While it may be too late for some lenders, it is never too late to take a prudent path.

“What gives you opportunities is other people doing dumb things.” Warren Buffett

Easy Read Summary:

The mortgage industry is changing because interest rates have increased too fast and many companies are not making enough profit due to one size fits all pricing. All mortgage companies need to follow financial rules and keep their finances in order to stay in the mortgage business. If a company loses money because they priced their loans too low or didn't manage their expenses well, they have to pay for it by using the money shareholders and LLC Owners saved up. This can lead to problems remaining approved by banks and government agencies that help mortgage companies provide mortgages to consumers. The result, companies have to sell their assets or close down.

This is similar what happened in 2008-2009 except mortgage volume is down 50% in 2023 versus 34% in 2008, when companies made risky assumptions and caused problems for themselves and the economy. It's important for mortgage companies to price their loans based on their own costs and profits to avoid making the same mistakes. Some companies have already gone out of business and others are too far down the road to be saved. Those that are left have to decide if they will choose to make better decisions.

Cal Haupt

Chairman and Chief Executive Officer

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

AMBA Discussion - How to Navigate Margin Compression and Best Practices

Although I rarely share our view of the Mortgage Industry in public due to the strategies we build around them.  When Shaun Graham and Rick Guerrero ask me to participate, I am happy to oblige.

Some raw footage from our discussion.

Happy to be on stage with  Fowler Williams (right) and Josh Moffitt (left).

The industry is in a perpetual expansion and compression cycle which requires certain strategies to remain in the sweet spot and grow no matter what the economic cycle suggests.

www.southeastmortgage.com 
770-279-0222

ART in Mortgage Industy - by Cal Haupt

Have you ever seen an ART Class where all the participants paint a subject from the same perspective and look over at each other to see how others are doing? 

Over the weekend, I was
reminded how important organically adapting a company to the market yields a major advantage and return. 

ART is a diverse range of executive activities creating a tangible expression of the executive’s technical skill intended to be appreciated by the shareholders and community analyst. 

Being able to see the beauty in the Mortgage Industry and its opportunity is a unique skill needed to see a path to incremental success over varying market conditions.  Most in the Mortgage Industry listens to the same paid service view of the market and act upon that data.  As a result, everyone is following the same path and by definition, if you are all doing the same thing an average result is the certain outcome.

The client and secondary market is a zero-sum game.  The client will always get a market rate and the secondary market will hedge and arbitrage that rate to an acceptable return without impact to the client.  How a company functions and the perspective they have of this known universe is what quantifies the rewards.

When I meet someone who follows Southeast Mortgage they always want to quantify us by volume.  I always respond that we track Revenue which is your ability “ART” to convert volume to revenue.  Revenue to Net Income is easy with a grasp on GOGS and Operating Expense.  I have combined 14 companies into Southeast Mortgage over the years and the net margins I observed left a lot of opportunity on the table.  Southeast Mortgage shared a unique perspective with the owners that yielded a significantly greater return for them from the same volume.  Given any volume of production has a theoretical maximum rate of return most only capture ¼ of what is available because that is all they see is available on others canvases.  I call it wasting opportunity.

If I could offer one suggestion to those that participate in the Mortgage Industry, it would be to keep an open mind to a better path.  If you can accomplish your goal 3x faster, don’t discount the opportunity just because the other canvases have the same picture resulting from pack mediocrity and shared expectation.  Traveling the same path always yields the same result.  Take a new educated perspective and create beautiful ART.

Cal Haupt
Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.
770-279-0222
www.southeastmortgage.com

Economic Recovery Top - Low Country View by: Cal Haupt

I wrote an OP ED back in December 2011 about the relativity of a recession and the best course of action based on my data supported by 3 recessions.  Now the recovery top view.  http://southeastmortgage.blogspot.com/2011/12/low-country-view-of-recessions-from.html  

As we move into the 8th year of the recovery, a DOW 20116, Commercial Flights Full, Malls Full, Restaurants Full, New Car Dealer Lots Over Flowing, and everyone on your street doing home renovations, everyone should govern their actions by data vs. the euphoric feel of a recovery.

With respect to the Mortgage and Real Estate Industry, I am still confident we are in the 15th month of a 60 – 72 month cycle expansion.  I am confident to the tune of investing millions in a 30,000 sq. ft. operations and life balance center at 3575 Koger Blvd in Duluth.  The growth for the past 15 months is ahead of my projections which provides a large enough sample to proof that my hypothesis is correct.

Now for the Yang to the Real Estate cycle Yin.  The financial markets, various stock markets and other financial derivative instruments, can falter without an impact on the Real Estate Market.  Why?  The primary participants or the 80% of the underlying trades in the above markets are institutions and traders.  When it corrects and it will, the retail consumer in general will not be hit the way they were in the last financial crisis because they are not in the markets as deep as they were in 2008-2009.  As a result, they will be unaltered in their euphoric quest for Real Estate.  Whether their need is trading up, trading down, or new home creation for families this trend has 4-5 years left before a plateau. 

My low country view is we all have to navigate the same rivers in a low tide (2011) that we navigate at high tide (today).  Anyone who has been at the helm of a boat knows rivers can be a mundane transit or a harrowing experience depending on tide and weather.  No matter the size of your boat, the outcome is the same.

 This is relevant in that although there looks like more water and routes to take at high tide, beware that the tide cycle and that route outside the normal river may be mud at a lower tide.   The only constant is the Captain (leadership) must know the tidal pattern and govern voyages based on that data.  Financial Markets are no different.  You just need the tide table. 

Most of the Mortgage Lenders that went out of business in 2008-2009 were all navigating in areas that were not part of the average safe tide and were not paying attention to the data that determines our financial tide table.

My advice to MLOs and other professionals related to the Mortgage Industry is although low score, high LTV, and limited documentation products fit a specific need for a very narrow segment of clients; be careful when a Mortgage Company leads with these unique products.  If they do, be prepared for a change in career. 

The safe river is clearly defined by the regulations and directives of our elected officials.  Fannie, Freddie, FHA, and VA products.  Yes, FHA has some low score parameters and should be ingested carefully given Neighborhood Watch reflects gluttons and common sizes them given low scores correlate to higher default and delinquency.  Prudence dictates moderation and sell to client need which is always a fiduciary's safe path for industry participants and clients at all tides.

 

Cal Haupt

Chairman and Chief Executive Officer

Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com

770-279-0222

Growth and Success is contagious at Southeast Mortgage

2016 Was Another Year of Opportunity for Our Talented and Loyal Family of Professionals.  Growth and Success is contagious at Southeast Mortgage.


ü51 New Employees Hired through November 2016

ü6 Internal Promotions

ü4 Officer Promotions

ü5 Vice President Promotions

ü2 Assistant Vice President Promotions

ü9 NEW Operations Shareholders

ü10 NEW MLO Shareholders

If you are a successful mortgage professional looking for a reciprocating relationship with your employer, Southeast Mortgage shares its success with the TEAM who creates it.
www.southeastmortgage.com
770-279-0222

“BREAKTHROUGH” Stock Issuance Program - Southeast Mortgage

Top 10  Southeast Mortgage Originators are issued Common Stock “BREAKTHROUGH” Incentive Program

“Our MLO’s and Operations Specialists are key members of our Team and create equity for shareholders.  As a result, Southeast Mortgage of Georgia, Inc., SEM, believes in sharing the wealth created with its employees.  Today, our 34 shareholders are originators and operations specialists.”  Cal Haupt, Chairman and CEO

In a surprise announcement at the Annual Christmas Party at the Ritz Carlton Atlanta on 12/14/2016, Southeast Mortgage of Georgia, Inc. announced their top 10 originators and issued each of them a common stock* grant valued on 12/7/2016 at $149,780.  In addition, 9 Operations employees were issued stock for exceptional execution of SEM's Service Goals.

Each year going forward, the top originators and operations specialists at SEM will be awarded shares (ownership) in Southeast Mortgage.

“SEM is now owned by 34 shareholders and shares ownership with employees that facilitate the growth of our company.  Unlike the many Mortgage Company LLCs with a few partners, SEM, a Georgia Corporation, has always had a core belief that everyone who contributes significant value to the company should share in the wealth it creates.  This is a unique opportunity for the best of the best MLOs and Operations Professionals to share in the equity they help create.  To my knowledge, this is a first in our industry and the right thing to do!” Cal Haupt, Chairman and CEO

 

www.southeastmortgage.com

770-279-0222

* subject to certain conditions

Southeast Mortgage - Fastest growing lender in Metro Atlanta for New Construction Q3 2015 - Q2 2016 Metrostudy

Metrostudy reveals Southeast Mortgage of Georgia, Inc. is the fastest growing lender in Metro Atlanta for new construction Q3 2015 - Q2 2016

"Our commitment to Awesome Service is being noticed by the builders in our State.  Southeast Mortgage, SEM, has a long history of adding value back to our builder partners by providing great predictable service which translates into happy clients that refer their friends and family.  SEM also keeps its partners in front of their closed clients via our CRM Marketing program for 5 years.  This is the same SEM program that grew our company into the largest Local Non-Bank Lender in Georgia.  I have visited several subdivision open houses and the Sales Team simply say Southeast Mortgage drives more buyers to their subdivision due to our marketing expertise."  Cal Haupt, Chairman and CEO, Southeast Mortgage of Georgia, Inc.

Try our NEW Awesome APP:
https://itunes.apple.com/us/app/southeast-mortgage/id1115070771?mt=8

www.southeastmortgage.com  phone:770-279-0222
www.metrostudy.com

 

 

Southeast Mortgage's NEW Headquarters / Operations / Life Balance Center (Updated Pictures)

3 months to go.  Southeast Mortgage of Georgia, Inc. - New Operations / Headquarters that supports our 14  Offices is moving rapidly to completion.
This will be the coolest most employee health friendly work place in the southeast. 
A great healthy place to work that brings life balance into the work place.  Stay tuned for the amenities list!  Will be WOW like we WOW our partners and clients.....

Entrance 4th Floor

3rd Floor TEAM Social / Workout

Cross Road East and West Side 4th Floor

Stairs from 4th to 3rd Floor TEAM Social and Workout Floor

Operations

Operations

 

 

www.southeastmortgage.com
770-279-0222

SEM TEAM begins comment period of Floor Plan's for their Awesome New Headquarters and Operations Center

The Southeast Mortgage TEAM is now commenting on the new Headquarters / Operations Center / Work Balance Floor Plans to ensure we have all the amenities and functionality in our 31,000 square foot facility.  Every opinion matters and we have already added some cool amenities not thought of.

The Video / Photo Studio has been increased and modified to shoot video for our partners on site and the massive fish tank's location has now been determined to relocate our swimming tenants. 

The fitness room is slated for a host of UHDTVs,  2 Octane Machines, 2 water rowers, 2 LeMonds Incline Bikes, 2 Tread Mills, YOGA,  and Weight stations.

Other amenities will be relaxation pods, bocce ball / putting green, ping pong, pool, and other competitive team building games.

The entry will be something never seen in at Mortgage Company.

Amazing space for an Amazing TEAM to provide Amazing Service to our Amazing Clients and Referral Partners.

Cal Haupt

Southeast Mortgage of Georgia, Inc. to Open a New 31,000 sq ft MAX Operations Center in Georgia

I am pleased to announce, Southeast Mortgage's new Corporate and Operations Center in Metro-Atlanta, Georgia. 

We will begin the build out and preparation of our new 31,000 square foot facility immediately.  We expect to occupy September 1, 2016.

The Expanded & Re-Designed Corporate / Operations Center will host all of Gwinnett Operations, Client Relationship Management, Executives, Fitness Center and other Wellness and Life Balance amenities.

This site is located at Pleasant Hill Road and I-85.  The space will provide the platform for our continued rapid growth and will reflect our industry leading innovations in the delivery of Awesome service to our Clients and Realtor / Builder partners.

 Although I have mixed emotions about leaving the memories and comfort of Club Drive, the foundation that created Georgia’s #1 Georgia Based Non-Bank Lender since 1993, it is time to turn the page and triple our capability and capacity.  Our success and innovation, now requires a new facility that facilitates our growth and will enhance our TEAMs balance with work, family, and health. 

I will post a floor plan at Club Drive on the 2^nd floor for each department to review and make notes.  The floor plan will only be for the 4th floor in that the 3rd floor will be dedicated to life balance initiatives.  This is our space and I want everyone's opinion to ensure our space design fits all our points of view and preferences.

 

Cal Haupt

Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.
Serving our Client’s Trust since 1993
www.southeastmortgage.com
770-279-0222

Testimonial - Awesome Service Creates More Clients for Builders and Realtors

"Adding value back to our Builders and Realtors is why we focus on Awesome Service one client at a time.  We do not focus on doing more loans than everyone else, we focus on creating new clients for our Builders and Realtors from providing their Clients Awesome Service who refer their friends and family.  Organic word of mouth growth is sustainable in economic expansion cycles and contraction.  We are not here to be Average, We are here to be Awesome!"  Kathleen, Ben, and Wilson Parker Homes exemplify that belief as attested by our client.

Cal Haupt
Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.

From: Paula Worthy

Sent: Thursday, January 21, 2016 5:13 PM
To: Kathleen Westbrook
Cc: Ben Richardson
Subject: Re: Clear to Close

Kathleen,

Words fail me at this moment. You have exceeded my every expectation!!! You provided outstanding customer service and support, and made me feel as though I were your only client. I have purchased several houses in my lifetime, this is the first purchase were I felt I had little to do and my lifelong friends were doing all the work for me.

You always made yourself available to me, even after hours. Candice always showed courtesy and love, and Adrian was like the big brother with the calm guidance. Let me not forget my awesome Realtor, Ben Richardson. This man knew what I was thinking, wanted to know, and researched answers before I asked the questions! He knew what I was thinking, feeling, and wanted in a home despite the words coming out of my mouth. God gave me the greatest blessing by putting you all together to work for my good in this home purchase. 

You all worked tirelessly and wonderfully to bring me to this magnificent end and I am eternally grateful for you all, as a cohesive team and individually. 

If anyone ever asked for help in purchasing a home, my first words will be BEN RICHARDSON (Harry Norman) and KATHLEEN WESTBROOK (Southeast Mortgage)!!! Every person who graces my home will know Candice and Adrian are the greatest team Wilson Parker Homes have. 

Thank you all for bringing me to and through this awesome transition in my life. I expect to see every one of you at my home warming, for you are all a part of my home. 

Home is where your heart is, and you all are a permanent part of my heart. 

Paula Worthy

 

 

www.southeastmortgage.com

770-279-0222

 

Cal-Culator - How Did 2015 End for the Atlanta Housing Industry?

How Did 2015 End for the Atlanta Housing Industry?

 The Atlanta housing industry ended the year on a more sluggish note than expected. The

Cal-Culator, Atlanta’s residential real estate index, remained stagnant at 6.9 for October and November, then took a slight dip to 6.8 in December. Tight inventory, home sales and a variety of other housing indicators were factors in the end-of-year decline. Although inventory was tight and the index was relatively flat, we did see a consumer, builder and Realtor shift to licensed service oriented mortgage providers.

 

On December 16, the Federal Reserve increased the Federal funds rate ¼ point for the first time in nearly a decade since the 2007-2009 financial crisis. Based on historical data in Georgia, the start of a tightening policy by the Federal Reserve, signals strong future mortgage growth for a defined period.
While the index holds true for the macro Georgia mortgage market, Southeast Mortgage posted a 99.3 percent growth in December compared to same period 2014.

Tight Inventory
According to Zillow’s November Market Report, the number of homes on the market fell 1.7 percent in November and 7.6 percent from the year prior, marking 10 months of year-over-year inventory declines. However, on a positive note, Atlanta experienced one of the biggest year-over-year inventory increases in the nation ­– a respectable 17 percent.

Home Sales
For the third time in the last quarter of 2015, pending home sales slightly declined due to increasing home prices and inventory, according to the National Association of Realtors. However, pending home sales in the South increased slightly by 1.3 percent in November.

“Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains,” said NAR Chief Economist Lawrence Yun. “While feedback from Realtors continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.”

RE/MAX’s National Report
RE/MAX’s December National Report, available for download here, revealed a number of stagnant factors about the housing industry:

• The average Days On Market for all homes sold was up three days, to 65 days, from RE/MAX’s national October average.
• The average number of home sales in 53 metro areas in November decreased 22.6 percent from October and was 1.4 percent lower than the previous year.
• The median sales price for all homes sold in November was down 5 percent from October, though this factor can help in housing affordability.

“Moderating prices help keep homeownership more affordable as we approach the end of a year that saw prices reach pre-recession levels in many markets. Even with anticipated rate hikes, mortgage rates are near historic lows, which also helps home affordability. Many home buyers find better availability and affordability in the winter months, before the traditional spring buying season starts,” said RE/MAX CEO Dave Linger.

Home Values           
Despite the dip, a bright spot at the end of last year was increased home values. Home values rose nationally 3.9 percent while many cities experienced double-digit growth, according to Zillow. Zillow also found the values of all U.S. homes grew $1.1 trillion, up 4.1 percent from 2014, though the year’s pace was slower than 2014.

The first Cal-Culator of 2016 will be released February 9, which will hopefully reveal a break in the sluggish performance.

http://leadership.saportareport.com/homemortgages/

www.southeastmortgage.com
770-279-0222
 

Happy New Year to our friends and family..... 2016 will Rock

www.southeastmortgage.com
770-279-0222

SEM News - Southern Crescent Association of Real Estate Professionals mixer

Southeast Mortgage had a successful launch of the Southern Crescent Association of Real Estate Professionals mixer. This monthly mixer, hosted by SEM, is a great way for both mortgage and real estate professionals to network together in the Henry County area. Here is a short video showcasing the event.

www.southeastmortgage.com
770-279-0222

Be Awesome Today

www.southeastmortgage.com
770-279-0222

SEM News - Showcase 2015 - Southeast Residential Real Estate Trade Show

www.southeastmortgage.com
770-279-0222

See what our client's say about Southeast Mortgage

The best recommendation is from Clients who have experienced the Southeast Mortgage difference.  Since 1993, we have put our clients first one client at time.  See what our client's say about Southeast Mortgage.

www.southeastmortgage.com
770-279-0222

What Southeast Mortgage Clients say about us "Testimonials"

At Southeast Mortgage, we believe in 360 degree accountability on every loan to ensure we are providing fantastic service one client at a time.  Mortgage Originators provide feedback on Operations, Clients provide feed on Mortgage Originators, and Executive Management reviews the total experience and adapts as needed to continue our legacy of "best in class service".

www.southeastmortgage.com

770-279-0222

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