To succeed in strenuous market conditions, brokers must look beyond traditional loans, says Andrew Russell
Remaining adaptable through the use of non-QM and debt service coverage ratio (DCSR) loans have been the calling card that has facilitated the success of RCG Mortgage owner Andrew Russell in an unpredictable and competitive Long Island mortgage market.
When rates plummeted down to under 3% during the COVID pandemic, American mortgage brokers were blessed with a seemingly unending supply of consumers looking to take advantage of an unprecedently low-rate market. But in recent years, consumer appetite has dried up significantly, forcing brokers like Russell to think outside of the box to remain competitive.
“Mortgage sales is an ever-evolving craft. Everything is good until it changes, and you have to evolve and adapt. I don't have the spots like a chameleon, but I feel like I am a chameleon in this business.”
And the stubbornly high rates that have characterized the past three years have separated the industry’s finest operators from the rest of the pack, according to Russell.
“I think it was one of the best things that ever happened, because you had a bit of a purge in the industry. Many players stopped doing mortgage when it wasn’t so easy, and the talented players stayed.”
Within this market landscape of diminished customer appetite and elevated rates, Russell has positioned himself as a go-to broker for non-QM mortgages on Long Island, which has substantially widened his client base. He has also been adept at offering DCSR loans, which require attentive care and a deep industry awareness.
“These mortgages coming to market have completely changed the game. It's 30 or fixed, a very safe product with more equity. Typical primary purchase is 20% down or more, so there's equity there as well. I feel like there's a huge opportunity because they're a little bit more difficult,” he noted.
Russell operates nimbly within the grey zones of non-QM loans, a skill that has opened new opportunities for his clientele.
“On a conventional mortgage, you take some information, you run their credit, you put them through an automated approval system, and it tells you a big fat yes or a big fat no,” he explains. “With these non-QM loans, there's more diligence, more industry knowledge that they must have around the loan itself. And I thrive in those environments because I like to stand out from the crowd as the guy who can execute more difficult loans than the next broker.”
Widening reach through social media
The use of social media has become a key component of every successful mortgage broker’s locker in recent years. And Russell’s digital presence has been crucial to developing a strong client base of self-employed business owners, entrepreneurs and investors looking to access non-QM loans.
For Russell, the most compelling content comes through education, with the industry veteran sharing his knowledge with short-form videos on Tik Tok and Instagram, along with two long-form YouTube videos per week – all targeted at his core client base.
“Education to me is everything. I've committed to improving my digital footprint on YouTube around it. That's my strategy.”
But Russell is quick to note that followers does not always equal business, emphasizing his ability to combine thoughtful social media content creation along with his close-knit relationships with real estate agents and investors for thought leadership opportunities.
“You can't just rely on the digital side. You can get a huge reach with digital marketing, but it is more quantity, less quality,” he said.
“So we deploy the land, air and sea model – it’s ultimately hand to hand, building relationships with realtors, promoting and presenting webinars, reaching out to CPAs and financial planners. They have tons of clients.”
