Enterprise leaders are exploring opportunities to embed automation more deeply into their businesses to multiply efficiencies.
“I don't want it to just be about volume,” DeFronzo said. “To retain employees, you have to give them opportunities, help them grow their business, and treat them the way you want to be treated. And I think that's our job.”
Katie Plesia, New Account Executive
TPO GO
He would be the first to admit that going big on wholesale was a risk for Norcom.
“There's more to lose. I don't think the market is saturated right now, but I think in three years time, some big player will come in and surprise people.”
One of Norcom's strengths is its boutique product line, specializing in down payment assistance programs, bonds, home improvement loans and FHA financing, as well as the personal service it provides.
Barbara Guarino, New Account
TPO GO Executive
New account executives include Katie Plezia and Barbara Guarino, both of whom were previously with Finance of America Companies.
“These are some really great AEs that have added a lot of value,” DeFronzo said. “Now we're reallocating resources to that side of the business and trying to do some fun, innovative things with TPO GO.”
About the wholesale industry and the industry as a whole
Broker market share increased to 24.3% in the fourth quarter of 2023, the highest since 2009. This is encouraging not only for large non-banking companies like United Wholesale Mortgage, which accounted for 48% of wholesale broker loans in 2023, but also for smaller and mid-sized lenders like Norcom.
“Since the financial crisis, brokers' reputations seem to have recovered somewhat,” DeFronzo said. “More consumers have gravitated toward that channel and are more knowledgeable about what brokers do. If you're a small producer making $5 million to $10 million a year, it may make more economic sense for you to become a broker and offer borrowers more options, not just in terms of price but also in terms of product.”
But like the tides, the mortgage market and the economy as a whole are always changing. For industry professionals, it's been a tough year. As businesses closed and people left the industry, those who stayed to weather the cycle had to prepare for contraction and growth.
“You never know what the next step is going to be,” DeFronzo says. “I always tell people that after 2008, 2009 was the best year ever, because by that time half the people had left the industry. Just be adaptable.”
It's clear he loves his job: DeFronzo's mother worked with him into her 80s, and at 60, he plans to work at least another decade before retiring.
Many leading companies are selling now because staying without growth leads to turnover, said Rick Roque, a mortgage banker and entrepreneur who founded Menlo Capital and recently became executive vice president of retail sales at Sierra Pacific Mortgage.
“Today, retail mortgage lenders need scale to remain competitive and succeed,” Roque said. “Local, independent mortgage banks will struggle to survive. [are] “There are a few small, family-owned, independent mortgage bankers that have held their own. They're profitable because they've been able to right-size their business and their operations. So they're what I call super brokers. They're about as small as a mortgage broker, but they're FHA-approved.”
Roque said he has always respected DeFronzo and what he has accomplished in building Norcom, but that the recent sale was “risky.”