In this week’s episode of the Power House podcast, HousingWire President Diego Sanchez speaks with Steve Jacobson, CEO of Fairway Independent Mortgage Corp. The pair explore best practices for building a company culture surrounded by humility and loyalty, growth strategies, community engagement and more. The duo also discusses Fairway’s status as a top 15 mortgage lender even after its decision to leave the wholesale channel.
To open the conversation, Sanchez asks Jacobson to explain how Fairway harnesses the power of positive recommendations to boost production for the company’s loan officers. Jacobson explains the importance of serving the wider community, which drives recommendations to Fairway while establishing a positive reputation.
Sanchez follows up with another question on creating loyalty within Fairway’s ranks. Jacobson explains that Fairway prioritizes employee free speech and inclusivity that competing brands may not have. Furthermore, after a few years of economic upheaval in the mortgage industry, Jacobson says that creating a culture of freedom and inclusivity is more important than ever for Fairway’s continued success.
Next, Sanchez questions Jacobson on how he retains high-level production leaders within Fairway’s ranks. He explains that speed and customer service rule every aspect of business, including the mortgage industry.
“Our competition is whoever gives us the best customer service,” Jacobson says. “As consumers, we expect instant everything. So, creating discipline across multiple sectors of a company where speed is our main focus is not easy, but I think you have to have systems across the board that are focused on speed.”
He says that all mortgage industry players must embody that speed-first mindset. Jacobson personally embodies this mindset in his individual practices and communique. Fairway’s consumers and employees expect speed and precision from the company, and the company’s speed stems from nothing more than discipline.
Later in the conversation, the duo dives deep into growth and strategy. Sanchez asks Jacobson to explain Fairway’s decision to exit the wholesale channel. Jacobson says that Fairway had been very profitable in the wholesale mortgage market, averaging between $3 billion and $4 billion in annual revenue. But he felt that Fairway should focus on other business areas that were more sustainable for the company over time. That decision prompted Jacobson to make the change which, according to him, came far too late.
Jacobson also addresses recent changes in the real estate and mortgage industries. He believes that these changes will not play a large role by next year if mortgage originators and other professionals embody a professional work ethic.
“If you have people focused on work, focused on what they can control, we still have people closing over 40 loans a month,” Jacobson says. “In whatever next year provides, it doesn’t matter. The people that work will grow.”
In 2025, Fairway’s growth strategy will focus on organic loan origination, recruitment and other growth areas that are common priorities across the industry. This is why Fairway seeks to set itself apart without creating an excessively high volume, Jacobson says, while also sharing that Fairway will be servicing its own loans instead of relying on a subservicer.
To close the conversation, Jacobson explains his plan to sell Fairway to its employees and give them opportunities to grow individually. He stresses that giving back to Fairway’s employees is vital for growing the company.
