Core Values Keep Directors Mortgage:
A Cut Above

By Megan Wilber

Over the past year, Directors Mortgage Inc., has seen something many lenders – locally, regionally and nationally – have not seen in light of the current real estate market: Growth.

In fact, Directors Mortgage issued more than $950 million in loan volume in 2009 – a record-setting year for the locally owned and operated mortgage company.

Founded in 1998 in Lake Oswego, Oregon, by CEO and owner Mark J. Hanna, Directors Mortgage has expanded its service area over the past decade to 12 offices throughout Oregon and Washington. Over the past few months, Directors Mortgage has hired more than 20 employees and recently announced plans to open two new Washington offices in 2010.

Hanna attributes the company’s growth and success during a market slowdown to the
development of a business model that offers a full-service mortgage banking platform. This
model allows Directors Mortgage to fund and underwrite all of its loans locally, providing clients and Realtor partners with a seamless transaction every time. Additionally, Directors Mortgage is not shy when it comes to paying its loan officers and employees. On average, the company pays 20 percent more than standard mortgage companies and it also shares company profits with its employees. Spending more than $60,000 per month on behalf of its loan officers, the marketing support Directors Mortgage provides is also unparalleled in today’s market.

In developing this model, Directors Mortgage attracts quality individuals who share the company’s core values of integrity and a superior work ethic. Two of these select people include Kelly Lee, Executive Vice President at Directors Mortgage and Kevin Hanna, the company’s Vice President.

“We have such a great management team,” says Mark J. Hanna. “These department heads are the engines behind the CEO.”

With 17 years experience in the mortgage industry and eight years working with Directors Mortgage, Kelly Lee is known for his excellent execution when it comes to the business.

“Kelly is highly disciplined, has an extremely high work ethic and is a man of integrity,” says Mark J. Hanna.

Lee’s military background and strong work ethic have allowed him to help keep Directors Mortgage at the top of the industry. He believes that part of this success is the
fact that the company never lost its true identity along the way.

“Over the years, the industry has seen so many changes,” says Lee. “Other companies changed their core values and philosophies to adapt. It’s truly a testament to Mark; we could have done it cheaper or differently, but adversity was our opportunity to stand out amongst our competitors.”

Validation of the strategy and business model that Directors Mortgage developed has come from a variety of third parties. In 2009, Directors Mortgage ranked amongst “The Portland Business Journal’s” top corporate philanthropists, donating $530,000 to charitable causes such as Providence Hospital, Special Olympics and various educational institutions.

The fact that Directors Mortgage maintains its commitment to giving back to the communities in which it does business is significant during a time when many companies are cutting salaries or expenditures. As with its business model, the company’s dedication to philanthropic endeavors has remained steady through the ups and downs of the turbulent economic climate.

“Our core values allow us to be proud of our achievements,” says Lee. “When you believe
in your core values, you attract people who share the same values. It makes it a great place to work.”

Following in his older brother’s footsteps, Kevin Hanna left Oregon to attend the University of San Diego where he became interested in finance and technology. When he graduated from college, he knew there was to tremendous opportunity to return to the state he grew up in and work at Directors Mortgage.

As Vice President, Kevin Hanna’s role revolves around a multitude of behind-the-scenes facets within the business. In his words, he has his “hands in everything”, committed to
operating the company’s wholesale division, streamlining internal systems and processes and offering marketing expertise and support.

“With all the regulations in the industry, a lot of systems don’t have the checks and balances managed,” says Kevin. “Our system does. These processes allow us as a company to take a step back and look at everything, hire great people and focus on growth.”

Kevin Hanna is responsible for implementing the Customized Sales and Service Automation Program at Directors Mortgage. The company’s new drip email system sends automated, personalized messages to loan officers, clients, processors, Realtor partners and others. These personalized emails include loan status updates sent to the borrowers and both Realtors at key milestones during a transaction, including: (1) Appraisal ordered; (2) Lock confirmation; (3) Final approval; (4) Loan docs sent; and (5) Loan funded.

Additional campaigns include: birthday greetings, loan anniversary greetings and ARM adjustment milestones. This system allows loan officers at Directors Mortgage to stay in front of their clients.

“Kevin is extremely smart, passionate, and has a nose for technology,” says Mark J. Hanna. “He brings excitement and technology skills that keep us on the cutting edge of stream-lining our mortgage systems.”

Further evidence of Kevin’s focus on helping Directors Mortgage stay at the forefront of technology is his development of the company website, which is a valuable resource for
Realtors and other industry professionals. The Real Estate Connection section of the Directors Mortgage website is filled with neighborhood information, including statistics on local schools and crime rates.

“Technology allows you, as a company, to be as efficient as possible in order to make that personal touch and to spend more time with your clients,” says Kevin. Indeed, Directors
Mortgage is dedicated to taking care of its clients and Realtor partners above all else.

In looking forward, Mark J. Hanna predicts Directors Mortgage will underwrite $1.5 billion
in loans in 2010. Over the next year, his goal is to continue to gain market sharein Oregon
and Washington. By continuing to take advantage of marketing and other opportunities in accordance with its business model and core values, Directors Mortgage will remain on the leading edge of the industry.

About Directors Mortgage

• 115 employees
• 12 offices in Oregon and Washington (2 more scheduled to open March 1st 2010)
• $950 million in loans issued in 2009
• 80% of profit reinvested in the company every year
• Funds more than 90% of its loans in-house
• Capacity to fund up to $300 million in loans per month
• Ranked amongst top corporate philanthropists by The Portland Business Journal
• $530,000 donated to area charities in 2008
• Mark J. Hanna, CEO/Owner

For more information about Directors Mortgage, visit www.directorsmortgage.net. Realtors interested in learning more about real estate partnerships and working with the experienced loan officers at Directors Mortgage, call the company’s corporate office at 503.636.6000.