When Steve Tetzner started a mortgage lending company with his father, Carl, a 35-year veteran of the industry, he didn’t think twice about the family dynamics.
Even though working with your family isn’t always easy, it’s part of the reason why their 15-year-old company, Homestar Mortgage, is so successful, according to Tetzner.
When they first started the Providence, R.I.-based company, Tetzner, who serves as co-founder and vice president, took care of sales, and his father handled operations.
“Working with family is always a challenge, and you butt heads a little bit,” Tetzner conceded.
But they both weathered the ups and downs of working together, and Tetzner still looks to his father – who is semi-retired now – for input.
Tetzner has been working in the mortgage industry for 16 years, and was someone to contend with right from the start. Within the first six months of his mortgage origination career at Fleet Mortgage, he was named one of the top producers in the Rhode Island. He was recently named the top mortgage originator in Rhode Island, and ranked No. 29 nationwide by Origination News.
“I really think it’s a great industry,” Tetzner said. “If you want to, you can control your own destiny. How hard you work determines what you’re going to get out of it.
“I’ve always had an entrepreneurial spirit,” he added. “No customer is perfect, but they always appreciate the hard work you do, especially with the new regulations and guidelines.”
Crossing His T’s
While you might hear grumbling from many in the mortgage industry about new regulations, there won’t be any complaints from Tetzner.
“I’ve seen the industry come full circle. It’s not something I’m unused to,” he said. “You cross every ‘T’ and dot every ‘I’ …and head off major issues that can come up with loans.”
Stiffened regulations require paying close attention and explaining the necessity of additional paperwork to consumers, he explained.
Tetzner faulted the media for creating a distorted picture of the mortgage market.
“I think that the media is really painting a poor picture of the reality of what mortgage lending is right now,” he said. “All they’re saying is that it’s difficult to get financing… which is untrue. Those that can’t get it are those that couldn’t get it six or seven years ago.”
Success is still achievable in this mortgage climate, according to Tetzner.
“Regulations are not making it impossible. Companies and originators need to adapt,” he said. “I don’t think it’s impossible to lend, make money and do business in this environment.”
Even though Tetzner is optimistic about the mortgage industry, he sees room for improvement, especially in how loan officers are compensated. Compensation for loan officers can no longer be based on a mortgage transaction’s terms, which means they can no longer collect rebates on higher-interest loans.
The current plan “takes the competitiveness out of the market,” he said. “I understand what the government is trying to do, but it’s a free-market system.”
To stay successful in the mortgage industry despite current obstacles, Tetzner advised: “Learn the guidelines in and out. Learn from those who have more experience, and take an approach so that they can effectively service the consumer and make the loan process as smooth as possible.
“So many people in the industry have gotten away from that,” he said.
