Squeezing Out Inefficiencies – Chad Jampedro of GSF Mortgage

Chad Jampedro, President of GSF Mortgage Corporation

Chad Jampedro, the President of GSF Mortgage Corporation, grew his company’s revenue from $12.4m in 2014 to $30.5m in 2017, a 144% increase, and now they are on track to hit aroud $30m this year.  

GSF Mortgage provides home loans, reverse mortgages, refinancing and new home construction loans across 32 states.  

In this interview with Eversprint‘s Malcolm Lui, Chad shares how he and his team accelerated their high value sales by:  

  • Automating as many tasks as possible to save time and effort for borrowers and their team alike.  This reduced the days from application to close from 46 days in 2014 to 20-23 days today.  (The industry average is 37-38 days.)  
  • Generating 20% of their new business via PPC ads, 60% via referrals, and the remainder from other channels.  Adwords provided the the highest ROI.  Facebook on the other has proven to be much more challenging.  
  • Applying his Plan, Measure, Adjust management style to all facets of their business.  For their marketing, their in-house team measured and adjust their PPC campaigns on a daily basis.  

GSF Mortgage Interview - (computer generated transcript) (transcribed by Sonix)

Download the "GSF Mortgage Interview - (computer generated transcript)" audio file directly from here. It was automatically transcribed by Sonix.ai below:

Malcolm Lui: Welcome to the High Value Sales Show of Eversprint.com. I'm Malcolm Lui, the Managing Member of Eversprint, and today we're speaking with Chad Jampedro, the President of GSF Mortgage Corp., a fast growing home loan, reverse mortgage, refinancing and new home construction lender. Welcome to the call Chad.

Chad Jampedro: Thank you Malcolm. Thanks for having me.

Malcolm Lui: Chad, you grew your company's revenue from $12.4 million in 2014 to $30.5million in 2017, a 145% increase, and for this year you're on track to hit $30 million in 2018.

Chad Jampedro: That's correct.

Malcolm Lui: To get to where you are today. What's the one thing your team had to consistently execute over the past few years?

Consistently implemented technology to save time for borrowers.

Chad Jampedro: We had a consensus consistently implement new technology into our business. You know the mortgage business has certainly very complicated. From a borrower perspective and from a company perspective lots of moving parts. Compliance and you need to find ways to automate those tasks as often as possible. And week we consistently look for tasks within our business that we can automate to save time and create efficiency for our borrowers. And we never take our eye off that ball

Malcolm Lui: Can you share how your your automation of the processes the technology you implemented how that has reduced the time required to to write a loan for people comparing your time from the time the close from 2014 versus till today

Reduced time from application to close from 46 days to 20-23 days.

Chad Jampedro: So the time in two thousand and fourteen you're looking at roughly 46 days from application to close. And today we're looking more like 20 to twenty three days application to close and a few of the systems that we've implemented from 2014 to 2017. The first is our origination system which is encompass origination system. So it re implementing or implementing that system over our existing origination system at the time created just a tremendous deficiency in the way our originators interface with our borrowers the way our borrowers interface with the documentation that we were putting in front of them and submitting documentation to us. That was a game changer. Along the same time we truly went to a paperless environment at that time. So everything is transmitted to us electronically versus you know getting physical documents either overnighted to us or walking into our offices making copies filing them. That became you know quite a quite a task for for any organization especially as your volume increases. And then the next would be our pricing system which was optimal blue. So that system is not much interface for the borrower but it put our pricing for each loan product in front of our originators in an extremely efficient way so they can search for scenarios that and access that pricing in real time live pricing in real time with just a fluke few clicks of the button. So those two pieces of technology are really the hub of our business. And then we've added on with our CRM HubSpot over the course of the years and a number of other ancillary system that may be more towards marketing versus origination but as it relates to origination in the process in and of itself encompass and an optimal blue change the game for us

Malcolm Lui: Now is optimal blue is that your own in-house product or is that off the shelf product that other mortgage

Chad Jampedro: Yeah

Malcolm Lui: Providers

Chad Jampedro: That

Malcolm Lui: Can

Chad Jampedro: Off the shelf. It's widely used in the industry optimal blue now our configuration each configuration is going to be just a little bit different company to company. So how we execute utilizing that system is going to be a bit different than others but it's available to the mortgage space

Malcolm Lui: Ok so you shorten your time from 46 days back in 2014 to about twenty to twenty three days today. How has the industry average changed over that time period

Chad Jampedro: So the industry average is still 30 plus days and there's a report that comes out on a monthly basis that's produced by LMA Alimi is the parent company of of Encompass and essentially it tracks all encompass users in their in their timelines to close. Now that is across all mortgage banking entities that could be banks credit unions nonbank originators like GSF and it's still near thirty seven thirty eight days depending on the month sometimes in the summertime you'll see that extend a little bit simply because you have more volume in the summertime especially in the Midwest when folks are moving and then as you get into the fall and winter not as much movement so turn times get a little faster. So we're still tracking on most cases two weeks ahead of our competition

Malcolm Lui: So back in 2014 then you may have been losing opportunities to sue to write to provide mortgages just because it was taking you forty six days to close longer than industry average. And now today you're on the other side of the coin. Right you're probably winning business that your competitors are losing because they just can't get it done in time.

Chad Jampedro: Yeah. And you know in many cases on a purchase transaction we would lose it. I mean so the expectation of the real estate agent is a 30 day closing now. Maybe during the 2014 period of time I have to go back and check those numbers. I think it was a bit longer than the 30 day. But you know the expectation was Hey can I Kohl's in three weeks or two weeks if I write this contract with with a signing date of two weeks can you make that happen. And you know we want to be honest with our referral partners and let them know look we're not tracking at that number. No we can't. And yes we would lose that deal. They would go to another provider that could call

Malcolm Lui: Right. I mean I totally give a pretty big advantage right now. Twenty to twenty three days vs. in this industry average of 30 plus days.

Closing faster huge advantage over the competition.

Chad Jampedro: That. Absolutely. We feel it's an advantage when we painstakingly manage each task in the numbers as far as the micro conversions to keep those numbers as low as possible. And time is money not just for us it's time. You know literally money for each one. We're one of our borrowers if you have a rate lock that's out there and it's hedged. So you have a hedged loan in the secondary market every day that that loan is locked that the loan is not closing it's costing your company money. Think of the hedges insurance. So you're paying for insurance to lock in that interest rate. So if we called an interest rate of let's say four and a half percent on a 30 year fixed well once that loan is locked we're paying hedge or insurance costs every day to keep that four and a half if the market goes up or down. We're maintaining that flat average for that particular borrower that flat interest rate. So every single day that ticks past is real money real dollars that that is spent on behalf of GSF. For that particular borrower before their loan closes.

Malcolm Lui: Right. So it's in your interests and everyone's interest to get this thing closed as quickly as possible.

Chad Jampedro: Exactly. Exactly

Malcolm Lui: So can you hear me. How many loans you had written or you had close yet issued in 2014 versus 2018

Chad Jampedro: So in 2014 numbers and you get that they maybe go back to those numbers. I think we were tracking around twenty five hundred loans a month at that time or excuse me twenty five hundred loans a year

Malcolm Lui: Okay

Chad Jampedro: And our over 5000 loans a year

Malcolm Lui: Wow. And when you. And in terms of actual number of customers or clients has has that also increased similarly or people getting multiple loans from you

Chad Jampedro: So no we increase. There are repeat customers in there and we certainly love repeat business but that's growth of core customer.

Malcolm Lui: Ok so you now have two times as many core customers today as he did four years ago as well. In line with your long growth okay. Fantastic. Now how does your company go about finding these new borrowers.

Chad Jampedro: Well there's a multiple of them and our marketing is pretty diverse. You know we we utilize a lot of paper click. We utilize Facebook a great deal but the majority of our business still is relationships that's built with our referral partners real estate agents builders financial planners attorneys refer business to us client their clients to us. And that's still the largest part of our business. Then from there we also utilize our database to continue to farm past close customers and prospects for additional business whether it be a repeat customer or them referring another customer to us. And then we also utilize a bit of direct mail where we think strategically we need a lot of direct mail for renters that we feel strategically and we've had a great result on that type of direct mail and a bit of radio advertising or what I call marquee advertising radio billboard and little bit of print our print is almost down and in 2019 I estimate our consumer direct print advertising will be zero

Malcolm Lui: The disruption of the internet

Chad Jampedro: Yeah. No question about it. It's just we thought and you know we try to look for uncommon ways to approach our customer and we want to do it in a way that's efficient to them and we want to trust that our customer tells us how they'd like to be communicated with and what we find is the internet works best and we can drive information to them and educate them and then ask them hey how would you like to continue to work with us. And in most cases it's going to be via text or email. But what we find is when we utilize print advertising we can't gather that information. So we find ourselves maybe we get an inquiry and then we just kind of call and call and call and call because we're not able to kind of grab from them the information from a communication standpoint that's relevant in a way that that aligns right so that we can actually get to them. So we find ourselves in the circle of OK we have a lead but we just can't get a hold of that lead. But a new utilizing the net we can target a little bit better and then we can gather more information on how they would like to be communicated with for we communicate with them which then really starts off the transaction in a positive light.

Malcolm Lui: Do you think at one point though down the line it actually might make sense to use direct mail again. Because

Chad Jampedro: That's

Malcolm Lui: Because

Chad Jampedro: Why we we've increased direct mail over this print over 2018 versus 2017 almost none now and 2018. It was roughly 3 percent of our marketing budget and we anticipated going to that highest 10 percent in some in some markets for marketing budget. We just feel like direct mail is now becoming kind of an uncommon way of communicating. If you send the right pieces in it and we keep it educational and you know the timing is right. You know I don't necessarily believe we mailed to folks every single month or every single week. So we want to pick specifically and very targeted information that's hyper local. So I think what we found from direct mail is that if we send things out to say hey the national average is this and where this that doesn't go so fine. So so well but if we can keep it local that says hey this is what's happening in your city in town then we get better response

Malcolm Lui: Right. I can see how that would work really well. And plus and I imagine my situation is similar to most people I get so little direct mail of relevance anymore that getting something that's targeted. And to me that's useful is it's almost refreshing for a change right. You just don't expect it

Chad Jampedro: No question. I mean the majority of the things that I'm getting in the mail are either credit cards Hey sign up for this credit card or retail catalogs we still I I still I wonder how companies spend so much money on catalogs know is it really. Is there a return on that investment I mean you get the big cat had to be expensive to produce and then expensive to mail and where you know it's coming to me and there's zero interest in it goes right in the garbage can. I mean what how how long before that changes

Malcolm Lui: Yeah. Exactly. It's just I guess it must make sense because they keep on doing it but it is it doesn't make me wonder as well. So in terms of the channels that you're using to generate new business which one's the best one in your opinion the one that you would say let's do more of it let's invest more in it into this channel

PPC advertising gives them the highest ROI

Chad Jampedro: You know paper click advertising is our highest return on investment. There's so much analytics in and around you know how a lead is behaving how our ads and campaigns are behaving. So there's a trust level there that goes a long way because we can see it is very transparent. So that is probably at least at this point our largest lead source that we would want to continue to maximize our investment in.

Malcolm Lui: And what percentage of your new business is coming from paper click ads right now.

Chad Jampedro: You know it's it's nearing 20 percent.

Malcolm Lui: That's pretty big

Chad Jampedro: All right. So that that continues to be continues to grow for us. And what we've found is that we can take paper click advertising and again make that very hyper local. You can run paper click advertising that's very specific even to one municipality and you can constantly continue to turn over new stones of opportunity you know in particular location. So again paper click is just you know not to say that it's it's you know it's not uncomplicated you know. You understand it. You have to have an individual who understands it at the highest level we do. We have a paper click expert on staff here and you're constantly just looking at your data adjusting your data. You know I have a management approach which is a very simple management approach that I use for not just everything that we do on the corporate side but everything we do within our branches how we train our sales people to plan measure adjust plan measure adjust and then measure adjust measure adjust as much as needed in order to reach the result that you're looking for. So the measure adjust piece we're constantly doing almost on a daily basis for a PPC measure and then adjust a little bit measure and adjust to get the maximum amount of it that we possibly can.

Malcolm Lui: Right now you do finding that the AdWords Google AdWords is that is the platform of choice you're getting more leads as from Facebook or some other source

Chad Jampedro: So it's primarily PPC through Google so the AdWords platform. But what we found is we use crop cross platform marketing which you know we pixel. So they're touching an asset whether it's opening an email or they're clicking on it. We're going to we're going to utilize the pixel to drop into their cookies and then then we're gonna cross platform market. And I'm sure you know we've all experienced that where maybe your. You click on and then Google and then all of a sudden you open up your Facebook and then there it is the product that you clicked on and Google is right there in front of you on Facebook Instagram and we utilize some of the same strategies

Malcolm Lui: Right. Awesome. Now 20 percent is coming from your PPC papers ad campaigns. The other 80 percent is it primarily coming from your referral partners from referrals from existing customer bases or another town that's working even better

Chad Jampedro: You know

Malcolm Lui: Than that

Chad Jampedro: Probably 60 percent from referrals and again these are just round numbers. And there's another 20 percent that is coming from all those others that you know it's direct mail it's some of the billboards that we have up the radio advertising and you know some of the print advertising and educational events that we do where we may have first time homebuyer seminars or move up buyer seminars. So you know that's about 20 percent of our business comes from all those multiple sources there and we're constantly trying new things. So there's always some research and development new ways to market. We're getting into more of the predictive analytics stuff now that we're trying to you know message and work with folks before as we see them leading up to making a buying choice for for a home loan. And you know that's all kind of included in that that last 20 percent

Malcolm Lui: Now have there have been any channels that you thought held great promise but then when you when you your team tried it out experimented with it and you found it to be just a complete disaster.

Their FB lead generation challenges

Chad Jampedro: Well I'll tell you that doing so so we've had success with Facebook from a retargeting standpoint and a cross platform marketing but just Facebook broad base posting an ad and promoting it. We thought that would be a win for us because we felt that it would follow some of the similar behavior as PPC. But it's not we would get leads tremendous amount of leads but they would be leads that we either couldn't get a hold over they had just a or they made it they they made a mistake they thought they were liking something but then you know turn into a lead script Facebook uses a scrape. So if someone you know clicks on an ad you can actually scrape their page and pull in their contact information even though they didn't fill it out and then you can contact them. But when that lead would flow from Facebook to a salesperson and the salesperson would reach out to them and in many cases they didn't know why that we were reaching out or they were. No they did not love or made it. Actually it just was pulling the data right off of their Facebook page and they didn't like that.

Malcolm Lui: Right.

Chad Jampedro: So now you have a negative situation with a borrower or with a client a potential client that you have to overcome and that's difficult to do when you're you're just making that initial introduction says Why are you calling. How did you get my information. And then he explained them while you clicked on our Adam Facebook. Well yeah I clicked on your ad I might have liked the image but I wasn't interested in talking with someone and Facebook on a surface seems like this great opportunity and it can. If you're selling just leads which was we see that all the time they're like hey we'll sell you Facebook leads. I know what those leads are and we can produce those on our own. But the conversion rate for those were were dismal.

Malcolm Lui: Right. I could see that. I mean the intent is totally different on on a Google AdWords versus a Facebook at

Chad Jampedro: So what we've done on Facebook is again more permissions. Well first of all we're not scraping that information off we're going to. We're going to bounce them so if they click and we'll share the free information with them but then they're going to have to take another affirmative action meaning click to our Web site and then fill out a form. Because now we know that it's intent based. Right. They they made us another click and they filled out a form. So you know the likelihood of them intending to contact us and for us to contact them goes up a great deal.

Malcolm Lui: Right. Now do you think it's a simpler case where you haven't fully figured out the best way to utilize Facebook. Or is it just simply Facebook and people interested in a mortgage. It just isn't a great fit for each other

Chad Jampedro: Well you know I think we've I won't say that we're masters at the Facebook my having there's always someone out there could do a little bit better but in our experience in marketing financial services on Facebook you know we we have we our secret sauce is that intent based marketing versus just a broad scorched earth approach. So you're going to get less of a result for your spend but it is it's certainly you know it's compelling enough to continue to develop it.

Malcolm Lui: Right. So you haven't fully given up hope on it. But it's not one that you're going to go in aggressively like you are and your advocates campaigns

Chad Jampedro: Yeah I mean AdWords we typically it's going to again it's in 10 days because they're searching they're looking for something and then they click you that's you know they're there for a particular reason but then the cross platform marketing which kind of spreads from PPC over to Facebook over to LinkedIn that works really well. So we're happy with that result for Facebook but just native Facebook marketing our approaches is going to continue to be free information. That's a big deal right. I believe in education. I also believe that the hard core clothes and financial services is that it's been dead for probably two decades. You know

Malcolm Lui: Yeah.

GSF plays the long game.

Chad Jampedro: Folks information with the Internet is just as widely available and we want to be a source of that information. We want to put goodwill into the marketplace that says hey here's information. Use it absorb it learn from it. And then when you're going to make your buying choice our expectation is that you remember us and come back to us because we're the you know the source of that information. And then from their interactions with the free videos or the free white papers or whatever it might be more inbound style marketing we're going to retarget them to come back to them and find out or try to find out when is the best timing for us to continue the conversation. So let's say for a first time homebuyer they go to Facebook they watch a video we may know from their retarget them to say hey are you interested. If you're not interested when do you think you may be interested and in six months is that. Is it a year or two years or or did you make a mistake or are you we sending this to you in error and we'll take you right off of our list to want to give them more credit in the ability to tell us how they want to interact with us. We actually have it on all of our mailing lists that say look I want you to send me free information but I never want you to call me right. I'm not interested in any calls to action. I'll let you know when I'm ready and we're OK with that. We feel like we if we respect our potential clients enough to let them tell us how they'd like to be communicated with what type of content they want to absorb and maybe they continue to absorb it and never use us as a foil for a mortgage company. We're OK with that because we feel like on the margin we're going to win more of those relationships than lose that

Malcolm Lui: And marginal cost of delivering it especially over the Internet is almost zero. So it's fantastic.

Chad Jampedro: Right.

Malcolm Lui: Now it sounds like you do a lot of stuff in-house and do you outsource any of your marketing outside of perhaps

Chad Jampedro: We've

Malcolm Lui: The main

Chad Jampedro: Done you know there are there are certain systems that we work with that are that are outsourced but I'd say it's kind of semi homemade. Right. So we will. I think you probably heard that term before. It's a we may use a vendor for certain aspects of it but creative is done internally. All of the reporting and tracking is done internally. We try to control it as much as we can. Simply because you find the angles of it to shape your messaging and sometimes it's hard to translate mortgagees to a marketing company. And we've had those that we've worked with them. And they do a great job. But you know they don't. They don't understand our business as well as we'd like them to. So there's this heavy overhead of explanation and for any really good marketer you know having a native understanding of the product that you're selling goes a long way. And typically when you hire an outside firm they don't have you know they don't have a native understanding of it. So now you're explaining to them what it is why it is a certain way. What are the Allen's elements that make it up and then from there. Finding a marketing message. So we find it much more efficient to have the marketing staff here. Not to say that they come in initially with mortgage experience but we train them over the course of period time and immerse them in the mortgage culture and then all of a sudden you have a great marketer who understands the mortgage business in a relevant way and you get fantastic relevant marketing out of them that actually makes an impact

Malcolm Lui: Right. Definitely the case. So I noticed how in our conversations so far you haven't mentioned a few things that how many come up as as being marketing channels that companies are investing S.E. Oh social media on the Twitters and Instagram and so on. What are your thoughts about that when it comes to the mortgage space.

Chad Jampedro: So we we have SEO strategies in place on the organic side. And you know that's a kind of a moving target. And we do track what our organics you know what our results are from from an organic perspective. We probably could do better there. We certainly could. That we tend to lean more on the paid side a bit as it relates to social we utilize Facebook a great deal. And with that Instagram comes along in the new demographic in the millennials certainly a part of that that new demographic that it performs well on Instagram as well. But you have to have the messaging right and you have to be relevant to the platform. You know LinkedIn in my opinion is a business the business platform but I see folks do utilize Consumer Direct messaging on there all the time. Facebook is more of a consumer direct but you have to be careful about your messaging because there is an expectation on Facebook that you're sharing something that's relevant and then it's not up to the hardcore cell all the time Twitter we've had almost no success with you know we have 140 characters but you know you can't post video you can. It's in my opinion on the financial services side. There's a larger story to tell there and we story sell a great deal that translates so telling the story of a first time home buyer who you know started one way and ended up in another or on originator that did a great job on a particular transaction really does translate well to Facebook and Instagram but not as much to Twitter. So we you know we spend zero budget on Twitter we do have a Twitter page and we tweet out information but we really haven't found a way to make it relevant to our business that actually generates leads that are called.

Malcolm Lui: Right. Taking a step back and maybe looking a bit into the future in two thousand 18 you're looking about 30 million dollars of revenue. What are your targets for 2019

Their 2019 targets with a likely tough macro environment

Chad Jampedro: So you know there's a macro note you know there's a macro market that we're participating in as interest rates rise. Typically you're going to lose refinance business which is a more transactional business less expensive to the organization that went down over 30 percent from 2017 2018. So we're pretty comfortable tracking at the same numbers you know from from 17 to 18. So the the number in 2019 since we don't know what those macro numbers will be how much will interest rates go up. That's going to impact our business. So if we could stay steady over the next few years at the same revenue and not to say that we don't want to grow we look at this year as a growth year since the majority of the industry took a step back from a revenue standpoint and we maintained about the same that's growth for us and we would expect the same thing. So if you know to give you the honest answer to that question if we track the same number in two thousand and 19 we would be happy with that number.

Malcolm Lui: Okay. Yeah totally understandable. It's really a function of how the U.S. economy is doing. Like you said and interest rates mean anything else

Chad Jampedro: And

Malcolm Lui: Employment

Chad Jampedro: You know the

Malcolm Lui: And so on.

Chad Jampedro: You know geo politically that has an impact on our business it moves money the investment dollar can only be spent one way. Right. And typically the bond market which is what controls interest rates. So the yields on bonds if they are going up and interest rates go down yields on bonds go up when more people are buying bonds. Typically in a market that we're in you know stocks are doing really well. So that investment dollars going into stocks out of bonds which raises interest rates. So if we had a recession which you know depending on what you know what news entity you read or consume now some projected in 2019 maybe at the end some in 20 something 21 someone 20 to you know if you get close to and we haven't an inverted yield curve now which typically is an indicator and at least the last 18 or 20 times that has occurred we are not more than a year and a half away from a recession we've had a inverted year yield curve. So that is an early indicator of a recession coming. When that happens typically funds go from stocks into bond yields go up. Rates go down on our business picks up. So you're going to have more refinancing more of those transactions folks coming in to reduce interest their interest rates which then you know is a boom for the mortgage industry.

Malcolm Lui: Right. So if say the next year or so continue to expect that the mortgage industry on the whole is going to have a tough time at it. And you know your aim is to keep your revenue steady which essentially is still growing. In light of the difficult macro conditions you know what's your plan to continue growing your business to continue getting the same number of mortgages closed and funded each year

Chad Jampedro: Well it's twofold. So it is smart smart growth from a hiring perspective so bringing on origination teams that are capable of originating at a high level in the current market not the previous markets where you had lower interest rates more refinance transactions so more purchased purchase centric teams joining GSF. The second is to continue to invest in technology to make us more and more efficient which then typically will attract individuals to both from a customer standpoint and from a salesperson standpoint said hey I want to be a part of this. So we continue to tell that story about how GSF is closing to faster we typically have a little lower interest rate that is going to drive borrowers especially in a slight marketplace to the strongest still the strongest survive. And if you're perceived to be that and you're an efficient closer and you have a lower interest rate you're gonna pick up more market share and then teams that note that identify GSF as the place to go to enjoy that for my my business within a business. That also also helps us continue to grow.

Malcolm Lui: Right now are there obvious obvious inefficiencies in your processes right now that you've identified that you know that you can shorten and speed up

Improving the document gather process to make it easier for the borrower.

Chad Jampedro: Well listen the document gathering processes we've we've made that as efficient as possible. And I believe there's still more work to do there of getting the information from the source the repository. So you know a good example would be listen we're gonna need a bank statement from a borrower to close a loan. And in our current scenario we have a very efficient way for them to up upload a bank statement that they print out from their bank to us and we have technology in place now but we have to continue to build awareness around it. That would say hey if you type in a one time use pass where we could actually just pull that right from your bank your bank pull the statement right from your bank so you put this one time use password in the bank of America. We'll just pull it directly from there. Building awareness around that because right now that's really a challenge because of the trust factor. The ah ah our clients are saying listen I don't want to share with you my bank of america username and password. They don't think you know obviously there is you can highlight in over the past few years identity theft and and folks credit being compromised. So they're weary of that. That's a good thing by the way. That's not a bad thing. But this is pretty safe stable technology. That's absolutely 100 percent secure building awareness around that will help us become even more efficient. Now we don't even need them to go and print it out and then upload it or scan it or you know put it into a PDA and upload it to our system. We could just go there and grab it and in doing that. That that cuts the energy and effort from the borrower side of things and from our originator side of things which allows them to more focus more on education and understanding strategy of their loan rather than scrambling to collect documents and upload them and get them into our systems. So we want to make that an afterthought.

Malcolm Lui: Right. I can see how that can be a huge plus. But at the same time I can't understand their consumer hesitation right. Because

Chad Jampedro: Certainly

Malcolm Lui: You never know if someone's going to make a mistake down the line and that information gets released out in the wild.

Chad Jampedro: Right. And unfortunately in our business now again we we still believe in it and support it. You know the amount of documentation after the mortgage meltdown did not go down it went up. So the demand for information is increasing. So you know it's not uncommon to talk to a borrower who maybe has done a loan let's say in the early 2000s and they haven't done anything with it since you know since previous to the meltdown and all the changes and compliance and for them to say wow that last time I got a loan I did they didn't ask me for all of these things and now you're asking for everything you know. And you also need a blood sample. You know they feel that the barrier to get that loan has gone up quite a great deal. So it's our job to utilize technology to take that feeling away. Yes there's a higher demand on information we can all understand why the repercussions from the meltdown were because of lack of documentation and investors not knowing what they're investing in so that that has gone up a great deal. But still a challenged borrower by borrower. So you want to put you know good strategies in place. From a technology standpoint to help you bridge that gap so you don't get that feeling from them that says wow this is way more invasive than I expected.

Malcolm Lui: Right. Yeah. Till you understand that I can see that. To ask questions for you. Who are your ideal customers and what's the best way for them to contact your team.

GSF's ideal customers.

Chad Jampedro: So my ideal customer are an individual who are interested in homeownership whether that be in refinancing their current debt on their home building a new property or buying a new property. And you know it really comes down to three things you know. They need to have viable income viable credit and the motivation to two to complete one of those transactions. And the best way to get a hold of us would be to visit our Web site goGSF.com and I will tell you that over the course of two thousand and 18 what we found is that we've done a tremendous amount of single cause construction loan. So that's a loan that closes one time it's for a new build of a home. And traditionally that was a two loan scenario. You went to your bank you get what's called a bridge loan you build your property and then you have to do construction to permanent loan. We have a product now that is for across all platforms that has a single clothes. And in this year one of the reasons why we've been able to maintain revenue when others are kind of sinking back from a really a soft year production wise is because of the single Coast construction product and we feel that we're an industry leader in that particular product set.

Malcolm Lui: This is a really a market leading product then. I mean you're no one else really has it and it's something that just expedites the whole process of getting a loan. Is that the case here

Chad Jampedro: That's exactly right. Now there are some others that have it's not as widely available as let's say a traditional 30 year fixed mortgage. And this is a 30 year fixed mortgage but a traditional FHA be a USDA conventional loan. We also have a variance from Fannie Mae that we were able to achieve that allows us to do a ninety five LTV so ninety five loan to value say only putting 5 percent down to build a home and there's no re qualification. So you don't have to qualify you once you close one time. That's it. You have the loan and you're not making any payments until you move in. To me that's just a great product because you know my mindset before I got into the mortgage business is to build a home you had to have all of this money down and it's this complicated thing. It's a dream of many to build their own home but they believe that there's a financial burden that they just can't overcome in order to do it in the way of a downpayment. And now listen we do USDA loans production 100 percent LTV they put absolutely no money down and they make no payments until they move in. So for a first time homebuyer someone who has is carrying a housing payment and now they need to sell that home in order to move in. It's a great option because they're not making two housing payments during the build process

Malcolm Lui: Right. So again it kind of goes with your overall company's philosophy of making things easy and as easy and as quick as possible for all parties right originators the borrowers

Chad Jampedro: Right.

Malcolm Lui: Fantastic.

Chad Jampedro: That is

Malcolm Lui: Thanks for joining us today. Kat in sharing how you accelerate your company's high value sales

Chad Jampedro: Absolutely. Malcolm I appreciate your time. Thank you.

Malcolm Lui: We've been speaking with Chad Jampedro, the President of GSF Mortgage Corp. about his company's rapid growth. For interviews with other fast growing high value sales companies, or to learn how we can accelerate your firm's high value sales through automation, visit Eversprint.com.

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