Three Factors Common to Many Successful Mortgage Startups of Recent Times

Succeeding in the residential mortgage industry takes a lot more than a plan and some capital. Companies that are just getting started in the business face unprecedented levels of competition and inevitably need to overcome many challenges right out of the gate.

Looking at some success stories of recent times, though, will reveal that there are some factors which almost always make a difference. A post at details how one lender grew from humble beginnings as a startup to become a national-scale leader. Others interested in following the same trajectory might learn some valuable lessons from that experience.

Getting Off to a Strong Start in the Mortgage Industry

Most Americans will never own anything as valuable as the house that shelters them. Lenders nationwide are committed to helping people of even modest means achieve the dream of home ownership.

While the mortgage industry can certainly be profitable and rewarding in other ways, it is an intensely competitive place. Even well-established incumbents frequently end up losing ground to others after they make apparently superficial mistakes.

That level of competition can seem so imposing that startups are often thought to have long odds of success. The story of the New York-based mortgage startup in question, though, reveals how factors like the following allowed it to become established and grow at an impressive rate:

  • Mission. Some entrepreneurs get started in the mortgage industry merely hoping to make some money. While that can be a fine source of motivation, it will never be enough to provide all the direction that a newly founded lender needs. Having a strong sense of mission from the start will allow a mortgage brokerage to chart its course with plenty of confidence and precision. That most often means identifying ways by which others in the field are failing to serve customers and becoming committed to doing a better job. Having a well-defined mission will allow a young brokerage to persist in the face of particularly inhospitable conditions.
  • Talent. Although leadership matters a great deal, the contributions of rank-and-file workers at a brokerage will always be important, too. Being able to attract especially talented brokers and others to a new business will make a successful startup stage a lot more likely. In many cases, having a distinctive mission already in place will make it a lot easier to recruit ambitious, thoughtful people. The talent that powers a newly formed brokerage through its earliest days will always have a lasting impact.
  • Technology. Just like with other types of financial services, mortgage brokerages today need to make fruitful use of technology. Many startups in the field strive to distinguish themselves from entrenched players by leveraging technology more effectively. Being able to use technology in ways that make a brokerage more efficient and flexible than competitors will always be helpful and desirable.

Learning From Success Stories of the Recent Past

There can be no denying that the modern mortgage industry often proves to be a cutthroat, unforgiving place. Startups that have excelled in the three respects above, however, have gone on to achieve things that many would previously have regarded as unlikely.


James Harrison: James, a supply chain expert, shares industry trends, logistics solutions, and best practices in his insightful blog.