Measuring Success

The Naysayers

While boutique mortgage companies do exist, their presence is limited, and there isn’t a widespread industry movement toward adopting this model. The allure of a boutique approach may appeal to some, but it hasn’t gained significant traction across the broader market.

Mike Cush, a freelance mortgage consultant, former vice president, and COO of Union Plus Mortgage Company, shared his perspective on why boutique models may not always succeed.

“Most U.S. banks don’t differentiate on mortgage lending as it is only a piece of the overall offering. Most IMBs (Independent Mortgage Banks) are started by or run by someone who was once a loan officer, and they grow by recruiting additional loan officers to capture leads. They don’t typically have a strong customer-facing value proposition because their success or failure depends largely on the performance of the loan officers they hire,” Cush explained. “In contrast, servicers take a different approach as their primary focus is on managing the asset. Since servicing is a low-margin business, they can’t afford to differentiate based on service delivery, resulting in a lack of brand loyalty.”

Cush’s perspective highlights a critical challenge faced by boutique mortgage firms: the difficulty of establishing a unique value proposition in a market where success is often determined by the performance of individual loan officers. This contrasts sharply with servicers, who, despite their operational differences, also struggle with creating brand loyalty due to the inherent limitations of their business model. As a result, the boutique model remains an intriguing but largely unadopted approach in the mortgage industry, with systemic factors favoring more traditional structures.

Watch it on The Interest: A Personalized Approach to Home Buying

Making Business Personal

Irene Amato of A.S.A.P Mortgage Corp. runs a bona fide boutique brokerage that’s proven to be a profitable business model for her business goals. A.S.A.P’s website boasts a specialties section — a value proposition to its customers — that boasts multilingual licensed loan originators who speak Albanian, Farsi, Hebrew, Mandarin, and Spanish, as well as specializations such as umbo loans, refinance loans, debt consolidation, FHA home loans, VA loans, USDA, 203k renovation loans, construction loans, and first-time home buyer loans. The company also holds a certification as a Military Housing specialist with the USA Cares program.

Amato said she chose to build her business up and brand it as boutique because it suits how she likes to do business.

“Purchasing a home is the largest investment of a lifetime. Some people do not want in-person. They do not want boutique. They want to just upload their documents, and that’s fine. I’m a people person. I like to connect on all levels with their needs, and also just emotionally,” she explained. “It’s a big decision, and there [are] a lot of questions that most people purchasing a home have.”

In the loan process, communication is key, especially for first-time buyers. Amato wrote a book called “Home at Last!” as a guide for all borrowers going through the home buying process, focusing on advice for buyers who might need an individualized approach, including single purchasers, self-employed, post-bankruptcy, and veterans.

The catered approach shouldn’t just apply to the mortgage business, Amato argues. “If I’m hiring a plumber, an architect, anything I’m doing, I want to be able to feel comfortable and have an advocate, not just a company,” she said. “I feel like when you go to a mortgage company to apply for a mortgage with a large lender or these companies that are mass production where they’re doing volume that is ridiculous, you have to lose something. I spoke to someone who said, ‘Oh, we do massive volume and we talk to every single client.’ There’s not enough time physically in the day to do that.”

Amato compared the big box lending style to fast fashion. “You’re not going to get the same service going to a Saks Fifth Avenue to purchase a dress that you would if you went to a personalized dressmaker,” she quipped.

Niches Galore

The specialties don’t end with residential loans. Monica Lubin, a Nashville-based real estate investor, broker, and private money lender for Keep Leading Spirit, a dba of Genovations Realty that specializes in buying and selling homes. Run by Lubin and her husband, Kevin Lubin, the duo specializes in getting new investors into the ring. Both Monica and Kevin are new to the lending industry — about three months in — but have been fixing and flipping houses for over a year in Tennessee.

Lubin highlights her primary clientele as individuals with lower credit scores. “I think the majority of my clientele is people who have anywhere from 500 through 620 credit scores,” Monica admits. “Of course, I can go a little bit lower to 400, but I usually, when it is 400, connect them with credit repair resources and professionals.”

She emphasizes that working with less experienced borrowers and those with lower credit scores represents a longer-term investment compared to more seasoned clients. It also requires more detailed attention and management throughout the transaction.

“For my client to qualify for, let’s say, a DSCR loan, [they] have to have preferably a 700 credit score if they want to get 75% cashback. I would go the extra mile to make sure that we can work something out to get that 75% cashback,” she said. In a recent transaction, Monica and Kevin were able to secure 100% financing for a client in Delaware, with Kevin stepping in as a joint venture partner.

Additionally, Keep Leading Spirit operates from a Christian-based ethos, which Monica says influences their client interactions. “We do have that relationship with our clients where we’re like, ‘Okay, how’s your day going?’ And just being encouraging. I have clients [who] always reach out and they’re like, ‘Hey, Monica, can you give me extra support today? I’m feeling a little bit discouraged.’ Investments are hard,” Monica said. This supportive approach underscores the company’s commitment to not just financial transactions but also personal connections and encouragement throughout the investment journey.

Despite the dominance of large-scale lenders, boutique mortgage companies like A.S.A.P Mortgage Corp. and Keep Leading Spirit demonstrate that personalized, tailored service still has a place in the industry. While large lenders offer efficiency, boutique firms provide a more human touch, appealing to clients who value connection over convenience. Though niche, this approach offers a compelling alternative in a fast-paced industry.