Sunset Mortgage:
Why are the chips stacked in their favor?

by Megan Wilber

In today’s chaotic financial market, the mortgage industry finds itself in a state of flux. Despite this chaos, Pacific Northwest-based Sunset Mortgage continues to thrive in the face of challenges that have forced many to close their doors or file for bankruptcy protection.

With 17 years of experience, Sunset Mortgage is one of the oldest mortgage banking companies in Oregon. The company has maintained its longevity and success through many ups and downs by remaining true to its core beliefs.

A variety of factors, such as being a privately held mortgage banking company, have contributed to Sunset Mortgage’s success. Sunset Mortgage encourages its personnel to “become part of a client’s profits…not their costs.”

A direct FHA “non-supervised Full Eagle” lender, Sunset Mortgage provides clients with a full range of mortgage products, in-house underwriting, document preparation and funding, flexible pricing engines, state-of-the-art data management and underwriting/reporting compliance. Focused on delivering high-quality services to its customers within a very congenial business atmosphere, the company is able to attract and keep experienced employees as well as a highly respected leadership team, all of which have contributed substantially to Sunset Mortgage’s growth.

Going “Net Bank”

In 1995, Sunset Mortgage became a mortgage banking company, delivering loans to secondary markets on what is known as “Best Efforts”. Recently, the company began providing loans on what is known as “Mandatory” delivery. The utilization of mandatory delivery allows Sunset Mortgage to improve pricing—translating into lower rates and fees for its clientele. This cost-effective pricing strategy significantly benefits loan officers and branches, allowing them to gain more market share by delivering a higher quality product at a lower price, thus increasing profitability for the Sunset Mortgage banking family.

“Initially, we began to acclimate to the changes occurring within the industry for ‘selfish’ reasons,” said Todd Johnson, President of Sunset Mortgage. “It was during this time we developed and fine-tuned some unique aspects of our business model. Essentially without knowing it, we were creating a hybrid ‘net branch’ structure.” According to Johnson, Sunset Mortgage’s new platform provides significant benefits for its existing staff and allows the company to utilize this program as a recruiting tool for its strategic growth.

“While the vast majority of mortgage professionals were looking for a safe place to land, with many of their opportunities typically found in the ‘net branch’ structures, we began to ask: ‘Why go net branch when you can GoNetBankTM?’,” said Johnson. “Through GoNetBankTM, Sunset creates a protective umbrella so our Net Bank affiliates can concentrate solely on origination and no longer worry about the business side of their operation.”

Positioned for Growth

Sunset Mortgage’s GoNetBankTM provides the flexibility required to adapt to most mortgage business models, which, according to the company’s Vice President of Business Development Jason Hillman, has been a major contributing factor to the company’s growth.

Hillman, along with Sunset Mortgage’s Business Development Coordinator Louanne Briggs, leads the company’s recruitment and acquisition efforts, designed to attract independent mortgage companies and individual loan originators throughout the Pacific Northwest, using a “high-touch” approach.

“It’s simple,” said Hillman, “during on-boarding, we proactively make contact with the various branches and the people within each of their specific departments, and regularly meet face-to-face to create a real partnership.”

Hillman said the details are key in this type of transition. “We have developed a very specific protocol for each department and all aspects of our new partner’s business, which ensures a streamlined conversion critical for success.”

Unlike many of its competitors, Sunset Mortgage’s creativity and ability to overcome market obstacles has favorably positioned the company within the mortgage industry. By engaging other mortgage originators and branches to join the Sunset Mortgage family, the company has strategically expanded its market share and enhanced its ability to better serve its clients. Over the years, Sunset Mortgage has grown to more than 200 employees and 27 branches in the Pacific Northwest. The company has plans to expand into other western and mid-western states in the near future.

Full-Service Assistance

“From a marketing standpoint, most companies and their loan officers lack discipline,” said Sunset Mortgage’s Chief Operating Officer Jeffery Lewis. “We are beginning to roll out automated campaigns to our loan officers in various branches so they can add value to their current and past customers and referral sources while staying in contact. When left to do it on their own, only 20 percent of the sales staff will follow through.”

To combat this problem, Sunset Mortgage has “implementers” who go out to the branches to proactively structure marketing campaigns for various branches and affiliated companies. After that, companies have the choice of managing their marketing or having Sunset Mortgage do it for them. According to Lewis, this approach results in more consistent contact with a quality message that fosters conversation and leads to deeper relationships, ultimately resulting in better services and products for clients.

Johnson believes Sunset Mortgage is poised to face the uncertainty of today’s real estate market successfully. “Out of this chaos, we have created a security blanket for mortgage professionals,” said Johnson. “We’ve been able to create a structure that allows people to continue to do business and to be successful. Our mortgage originators are able to provide creative financing options for people who need money—whether for a purchase, a refinance to consolidate debt or possibly to leverage themselves into other investment opportunities. We have plenty of products and money available.”

Lewis explained part of Sunset Mortgage’s mission in response to current market conditions is to assist other mortgage companies in crisis through its established organization, which translates into a broadening of Sunset Mortgage’s reach throughout the region.

Kenton Powell, President of Cascade Capital Partners, Inc. in Bend, Ore., came to the conclusion that partnering with a direct lending source was the smartest way to position his company for the future. He decided Sunset Mortgage was the best company to partner with.

“Sunset Mortgage gave me the products, the access to the market and the support I needed to survive,” said Powell. “Without a strong conduit relationship we could not compete and without FHA/VA programs our business would fail. Sunset allows me to run my company the way I want but gives me the tools to be successful. Sunset gives me autonomy but allows me to show strength and stability.”

Strong Realtor Support

Sunset Mortgage’s GoNetBankTM also offers considerable benefits to Realtors experiencing the effects of a difficult market. “While other companies are collapsing, disappearing and tightening up with limitations, we are expanding opportunities for clients to be able to buy properties, thus perpetuating a broker’s continued success,” said Johnson.

As a company, Sunset Mortgage believes in stepping up and being creative when determining how to develop a sales plan. By offering a broad variety of loan products and niche channels, the company is able to tailor its programs to the needs of an individual client or a specific project, rather than offer only blanket programs that do not necessarily work for everyone.

John Taylor, President of Taylor Group Realty, said he is continually impressed with the efficiency and quality of work displayed in his transactions with Sunset Mortgage. “Todd Johnson has been a ‘deal-saver’ many times for me and my team over the last several years,” he said. “When others couldn’t get a loan funded, Todd stepped in and closed one of my personal homes within 24 hours.”

Lewis explained the unprecedented chaos in the current financial markets has confused and frightened both consumers and referral sources. “There is a lot of mis-information floating out there,” he said. “Our job is to instill confidence and certainty so our Realtors and other referral sources can create and close transactions without last-minute surprises. Sunset Mortgage is committed to cultivating solid partnerships through every transaction and every client—be it a buyer/borrower, Realtor or builder.”

Sunset Mortgage’s GoNetBankTM platform allows the company to consider all options. “Growth needs to be controlled and focused,” said Lewis. “In other words: We look for quality. We’re attempting to take a market painted ‘doom and gloom’ and uncover the positive. Sunset is steering through a bumpy storm while looking for opportunities to develop and strengthen relationships.”

Indeed, the mortgage industry has changed dramatically and will continue to offer real estate professionals a variety of challenges. In light of this fact, Sunset Mortgage is positioning itself as a safe harbor for the real estate community.

Exceptional Leadership

“[Sunset is] definitely a unique company because we’ve been around a long time, we have good people and we know what we’re doing,” said Steve Berger, Branch Manager and Senior Mortgage Banker with Sunset Mortgage’s Clackamas branch. “We’re growing like we’re growing because we have the foundation for any branch to succeed. The reality is: Greatness relies in the people and the quality of the work they do. Our support staff…truly are the best. And Todd [Johnson] deserves the kudos for being the rainmaker. He’s always been the one who makes things happen.”

Indeed, Johnson’s leadership and vision throughout the years has led Sunset Mortgage to stay above the fray as many other mortgage companies have been forced to close their doors. With degrees in Engineering from Oregon State University, Johnson began Sunset Mortgage on a foundation of personalized service, basic economics associated with return on investment and a commitment to developing long-term relationships—all with a good amount of humor thrown in the mix. He continuously reminds his staff to make sure they are “always having fun”.

With 30 years of mortgage industry experience and relationships, Lewis’ addition as Sunset Mortgage’s COO complements the management team’s existing breadth of knowledge.

“Sunset’s impressive success is directly attributable to its core management’s deep understanding of the real estate financing industry,” said Hafez Daraee, an attorney with Jordan Schrader Ramis, PC, and Sunset Mortgage’s primary counsel for nearly seven years. “Sunset has repeatedly demonstrated its ability to spot trends in the market before others and position itself so it can respond rapidly and flexibly to market forces. This translates into Sunset being very responsive, and providing extremely high-quality, cutting-edge service for its clients. It is not at all surprising to me that Sunset has thrived and expanded in the worst economy this country has seen in the last 50 years.”

According to Johnson, Sunset Mortgage’s goal revolves around a singular dedication to providing quality service to all of its clients and partners. He admits, however, that with hard work comes just rewards. “Above all, we want to create an environment where people understand their work is worthwhile, lead by values and don’t forget to have fun every day. Like my dad always said: Remember, this isn’t a dress rehearsal.”