This week on Power House, Diego Sanchez sits down with Suzy Lindblom, the new COO of Sierra Pacific Mortgage! Suzy stepped out semi-retirement to consult for Sierra Pacific before joining their executive team full time.
Suzy and Diego talk about Sierra Pacific’s growth and winning market share strategies, including their entry into the non-QM space after 40 years in the conventional mortgage space. She also talks about embracing AI without replacing humans, rolling out new broker tools, and more.
We recorded this conversation live at our Housing Economic Summit. Check out the full video here!
Here’s what you’ll learn:
Sierra Pacific offers a wide range of mortgage products, including non-QM options.
Sierra Pacific focuses on building relationships with brokers to win market share.
They are methodical about hiring and aligning staff with its culture.
AI is seen as a tool to enhance, not replace, human roles in the mortgage process.
The company is preparing for various market conditions by being nimble and adaptable.
Sierra Pacific is not actively seeking M&A but remains open to opportunities.
Related to this episode:
Sierra Pacific Mortgage hires Suzy Lindblom as COO | HousingWire
https://www.housingwire.com/articles/sierra-pacific-mortgage-hires-suzy-lindblom-as-coo/
Suzy Lindblom | LinkedIn
https://www.linkedin.com/in/suzylindblom
Sierra Pacific Mortgage
https://loans.sierrapacificmortgage.com/
Enjoy the episode!
The Power House podcast brings the biggest names in housing to answer hard-hitting questions about industry trends, operational and growth strategy, and leadership. Join HousingWire president Diego Sanchez every Thursday morning for candid conversations with industry leaders to learn how they’re differentiating themselves from the competition. Hosted and produced by the HousingWire Content Studio
Suzy and Diego talk about Sierra Pacific’s growth and winning market share strategies, including their entry into the non-QM space after 40 years in the conventional mortgage space. She also talks about embracing AI without replacing humans, rolling out new broker tools, and more.
We recorded this conversation live at our Housing Economic Summit. Check out the full video here!
Here’s what you’ll learn:
Sierra Pacific offers a wide range of mortgage products, including non-QM options.
Sierra Pacific focuses on building relationships with brokers to win market share.
They are methodical about hiring and aligning staff with its culture.
AI is seen as a tool to enhance, not replace, human roles in the mortgage process.
The company is preparing for various market conditions by being nimble and adaptable.
Sierra Pacific is not actively seeking M&A but remains open to opportunities.
Related to this episode:
Sierra Pacific Mortgage hires Suzy Lindblom as COO | HousingWire
https://www.housingwire.com/articles/sierra-pacific-mortgage-hires-suzy-lindblom-as-coo/
Suzy Lindblom | LinkedIn
https://www.linkedin.com/in/suzylindblom
Sierra Pacific Mortgage
https://loans.sierrapacificmortgage.com/
Enjoy the episode!
The Power House podcast brings the biggest names in housing to answer hard-hitting questions about industry trends, operational and growth strategy, and leadership. Join HousingWire president Diego Sanchez every Thursday morning for candid conversations with industry leaders to learn how they’re differentiating themselves from the competition. Hosted and produced by the HousingWire Content Studio
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NewsTranscript
00:00I think it's the relationship we have with brokers
00:03that are going to attract brokers to us.
00:06And you know, everybody has their way,
00:08but we want to be that comfort place for the brokers.
00:20Welcome to Powerhouse,
00:21where we interview the biggest names in housing
00:24and ask them about their strategy for growth.
00:27I'm Diego Sanchez, President of Housing Wire,
00:30and we are actually recording live in person,
00:35which is amazing, from our Housing Economics Summit.
00:38And my guest today is Susie Lindblom,
00:40who is the relatively new COO of Sierra Pacific Mortgage.
00:45Susie, it's so great to have you on the show.
00:47Thanks, Diego, I appreciate it.
00:49So for those in our audience
00:52that are less familiar with Sierra Pacific,
00:55could you tell us a little bit about the company,
00:57your product set, and your geographic focus?
01:01Of course.
01:02So Sierra Pacific is, it has been around for 40 years.
01:07It's, it definitely is a mainstay, great company.
01:13We lend in all 50 states.
01:16Our product set is, of course, you know,
01:18conventional FHA, VA, USDA.
01:22We have gotten into non-QM in the last year.
01:25Excited about that.
01:28Doing a DSCR product, 12-month and 24-month bank statements.
01:32So across the board, you know, all the products,
01:36we do bond products as well.
01:38So, you know, full scope of products across the board.
01:42And what percentage of the business is on the non-QM side?
01:45I know that's newer.
01:46It's newer.
01:46I would say it's about 10% now.
01:49And, you know, we're building some great tools.
01:51We are mainly TPO.
01:53We have retail as well, but we're building some great tools
01:57for our brokers and our loan officers internally
02:02to do bank statement analysis.
02:04So we're building a portal that they can send
02:06in the bank statement prior to the loan
02:08and get the income calculation from it.
02:10So great products coming out.
02:12And it's a really interesting product
02:14for this hire for longer rate environment.
02:16Yes, yes.
02:18So you joined the company as COO about three months ago.
02:23Yes.
02:23So you're still relatively new.
02:25What excited you about Sierra Pacific
02:28as a company and your role?
02:31You know, it's interesting how I came to Sierra Pacific
02:34is as we were talking earlier,
02:36I've been in the business a long time
02:38and about a year and a half ago, I thought, well, you know,
02:42I might step back and just consult and semi-retire.
02:47That didn't work out.
02:49I actually was working about 60 to 70 hours a week
02:52consulting.
02:53Oh, wow.
02:53Probably working even harder.
02:54Yes.
02:55And Sierra was one of my clients.
02:57And so the more I worked with them, you know,
03:00I think I'm really lucky.
03:01How many people get to try on their company for six months
03:04before they decide to go with them?
03:07And the more I worked with Sierra, I loved the company.
03:09It was a great company, great leadership.
03:12And, you know, Jay Promiscu and I
03:16have known each other for a while.
03:17And he kept asking me to, you know,
03:19why don't you just come on?
03:20Why don't you just come on?
03:21And so in November, we decided I was just gonna come on
03:25to Sierra and come on as their chief operating officer.
03:29That's so interesting.
03:30That's actually my path at HousingWire.
03:32Okay.
03:33I consulted for HousingWire for five or six months
03:35and then Clayton was like, okay.
03:37Yeah.
03:38It's time.
03:38It's time for this to be full time.
03:40You get to try on the company.
03:42It's great.
03:43It's great for both sides.
03:43Yes.
03:44Yeah.
03:45So, all right.
03:46So you've been there three months.
03:47What has surprised you about the company
03:50in those first three months?
03:52You know, it's a little of what I was saying
03:56is the partnership and the, among the executives,
04:02you know, and with the company,
04:04even with operations and sales.
04:06You know, you always hear about that conflict
04:08with operations and sales.
04:09You don't have that at Sierra.
04:11You have, it really is, you know,
04:14you say that in a lot of companies, it's like family,
04:16but at Sierra, it really is like family.
04:18And, you know, we have a common goal
04:20to make Sierra the best and to really serve our customers.
04:25And everybody is looking for new ways to make us better,
04:31make our products better, make our process better.
04:35And so it's a continuing partnership.
04:37And again, you hear that with a lot of companies.
04:42And as I said, I've been in the industry for a while.
04:45You very rarely find it as well as it is at Sierra.
04:49Yeah, and I imagine some of that credit
04:51should go to Jay Promisco.
04:53I agree, I agree.
04:54Who about a year ago was named president.
04:57Named president, yes. Of the company.
05:00I know Jay.
05:01Jay's a good, a really good guy, very strategic.
05:05Yes. And also very demanding.
05:06I think he runs a pretty tight ship.
05:08And so I'm interested in how that partnership developed
05:13between you and Jay and how it's going
05:15these first three months.
05:17You know, Jay and I worked together at a previous company
05:20and hit it off and had a good partnership there.
05:24And so over the years we've stayed in contact.
05:27And, you know, when I came on to consult with them,
05:33you know, I got to know him.
05:35I never had him as a boss before.
05:36So, you know, got to know him in that.
05:38We had always been peers.
05:40And it is a true partnership.
05:43We, you know, we talk about a lot
05:46of what we want strategically.
05:49And Jay is extremely good at what he does.
05:51He's very good at sales and he's very good at looking at,
05:55you know, the strategic initiatives of what he wants.
06:00And I think the partnership is,
06:02I'm very good at problem solving
06:03and looking at the bigger picture
06:06and seeing where is the problem
06:08and what is the solution to it.
06:10And so I think the combination of, you know,
06:14his sales side and his strategic, you know, vision
06:19and then me being able to implement it for him.
06:21I think that's how our partnership works.
06:24And how are you dividing up
06:26the executive responsibilities of the company?
06:30So my responsibilities are operations,
06:35strategic initiatives, but I get very involved in credit.
06:40I have credit risk under me as well.
06:42I get very involved in a lot of other areas, right?
06:46Like I actually am going to go out to Sacramento
06:49to Folsom next week to really look at post-closing
06:53and how we can, you know, make that more efficient.
06:56I work with capital markets quite a bit
06:58on the development of products.
07:01And Jay takes care of the whole company,
07:05but with his concentration mainly on sales
07:07and very, very large initiatives.
07:10When I last spoke with Jay,
07:12probably six or seven months ago,
07:15he seemed very focused and motivated on taking market share
07:20in this difficult origination market.
07:23Is that still the focus for Sierra Pacific?
07:25It is.
07:26It is definitely one of our strongest focuses
07:28and we're actually doing very well.
07:30We have been hiring on the TPO side.
07:34We've been hiring account executives,
07:35but we've also been hiring loan officers
07:37on our retail side as well.
07:40So, you know, we're working to build branches.
07:43We want, we don't want the big bang.
07:46We want to be methodical about bringing on our staff
07:49and making sure that it aligns with our culture,
07:52aligns with what we're looking for in the future.
07:55And what's the ideal split between the wholesale channel
08:01and the retail channel for you?
08:03You know, right now it's more wholesale,
08:07definitely by far.
08:09You know, I think that Jay would like to get to
08:11about a 60-40.
08:12Okay, 60 wholesale.
08:14Yes, 60 wholesale, yes, yes.
08:17And, you know, talking about growth,
08:21do you think M&A is part of that growth strategy?
08:25There are a lot of companies out there
08:26that might be looking for a buyer.
08:27I would say it's not something we're actively looking at,
08:31but if the right opportunity came, definitely, yeah.
08:35It's not something that we are out looking for,
08:38but, you know, always if a right opportunity,
08:41you know, I know that Jay's been involved in it
08:43and I have been involved in it in my career.
08:46And I think that it's a great way to bring on, you know,
08:50staff and really good, especially good salespeople,
08:53but we're not actively looking.
08:55The wholesale channel is tough
08:57from a competitive perspective.
08:59It is.
08:59And you've got some really big players
09:02who are battling it out.
09:03How do you win market share in the wholesale channel?
09:09I think you win market share
09:11by being a true partner with the broker.
09:13You know, when you are just,
09:18brokers are just run of the mill
09:20and it's bringing as many brokers in
09:22and, you know, run them through this factory line.
09:26I think the difference is we don't have that factory line.
09:29We're very personable with our brokers.
09:32I've actually been on some
09:34where we've done non-QM training with our brokers
09:38here in the Dallas area and met with them.
09:42I think it's very important to have operations
09:45as part as your sales group
09:47and, you know, be in front with the brokers.
09:50My underwriters talk to brokers.
09:52I don't hide them behind walls.
09:55And I want, I was talking to one of our AEs
09:59in Illinois yesterday and I was telling him,
10:01I will be on any phone call with you.
10:03And he was a little shocked.
10:04And I said, no, that's what we do.
10:07So I think it's the relationship we have with brokers
10:13that are going to attract brokers to us.
10:16And, you know, everybody has their way,
10:18but we want to be that comfort place for the brokers
10:23that they can come, they can talk to us
10:25and we will help them make loans.
10:27And, you know, I was talking about the portal
10:29we're building, that's to help brokers
10:32so they can get the income upfront
10:33and help pre-qualify the broker, you know, their borrowers.
10:36So, you know, giving them the tools to help them.
10:39So you're thinking about the ways
10:41that you differentiate yourself in the Wholesale Channel.
10:43There's tech, there's rate, obviously.
10:46Right.
10:46Right.
10:47And then there's service and education.
10:49It sounds like you're leaning in on the service component
10:51so that your brokers have a great experience.
10:53Right.
10:53That makes sense.
10:55So we're seeing a lot of the big servicers get bigger.
11:00They're acquiring massive amounts of MSRs.
11:04And then when rates dip a little bit,
11:08you're seeing them do a lot of origination in that book.
11:11How is Sierra Pacific thinking about that dynamic
11:14with the servicers and how you can make sure
11:17that you have a piece of that recapture and refinance pie?
11:21Well, you know, we do have a sizable servicing.
11:26It's not as large as some of these.
11:28And, you know, recapture is important,
11:30but we also, again, we want to take care of our brokers.
11:33So we make sure that we have our partnership with them,
11:36that their borrower is their borrower.
11:39So, you know, we work it both ways.
11:42And of course we want the recapture
11:44and we want to make sure that our clients stay with us.
11:47But we also want to make sure that our brokers are good.
11:52And quite honestly,
11:54I don't know when that recapture market's gonna come back.
11:56You know, that's something that we're not banking on.
11:59I know some companies are banking on it.
12:01We're not banking on it, but when it comes back,
12:04we do have a strategy around it.
12:06You'll be ready.
12:07We will be ready.
12:08That makes sense.
12:09Now, technology.
12:13Constantly talked about in mortgage, right?
12:16And we've seen some lenders really shift their focus
12:22in terms of build versus buy to build.
12:26You know, where you're seeing some lenders
12:28that are building out their own POS, their own LOS.
12:31Some are even doing the CRM and PPE components.
12:35How do you think about that build versus buy equation
12:39and whether you want to build out your own stack
12:42at Sierra Pacific?
12:44I will tell you, I think that Sierra Pacific
12:46is on the leading edge of that.
12:48We built out our own LOS years ago.
12:52So very proprietary.
12:54We like to build your own.
12:56We have our own POS, our own LOS.
12:58We do work with a lot of vendors also and bring them in.
13:02This portal I was talking about is a build your own.
13:05So we had an opportunity.
13:06We actually looked at a couple of vendors
13:08and decided to go and build our own.
13:11So we are very much a build your own
13:13and have been with vendors coming on and helping us out.
13:18There's some things that we don't build.
13:20So we look at it both ways,
13:23but I would say you're looking 75% build your own.
13:26Wow.
13:27And so does that mean an onshore tech team,
13:31offshore tech team, combination of those two things?
13:34Right now it's all onshore.
13:35And, you know, our CIO is,
13:39he's been with Sierra for a long time.
13:41And I will tell you our ExpressMOM is what we call it,
13:46is probably one of the best systems I've seen.
13:48And I've worked with all of them.
13:49And ExpressMOM is really, really top of the line.
13:54And how are you thinking about
13:57and integrating artificial intelligence into that picture?
14:00Because, you know, you talk to some lenders
14:03and some technology companies,
14:05and they're thinking that, you know,
14:07processors and some other parts of the operations chain
14:11are gonna be much less needed.
14:13You know, I always find that interesting.
14:15So number one, to answer your first question,
14:18we have actually made a sizable investment
14:19into working with an AI company.
14:23And so we are very much into looking at
14:28energetic AI.
14:31And I smiled because I remember when DU came out,
14:35everybody said, underwriters are gonna go away.
14:38I don't think the human is ever gonna go away.
14:40I think that there will always be the need.
14:42I think of AI, I'm a very big AI component.
14:46And I think AI will bring a quickness to our process.
14:55But I think you're always going to need human intervention.
14:58So I don't think that it's going to do away
15:00with the processor job or the underwriter job.
15:04I think that it will enhance that job
15:06and it will become more specialized.
15:08You won't need as many, but I think you'll need them.
15:12And that's kind of the method that we're going,
15:15is it's where you have an assistant,
15:20an AI assistant helping you with your job.
15:23So we're here at the Housing Economics Summit
15:26where so far we're hearing kind of a mixed picture
15:29about 2025.
15:31There are some things that look good,
15:32like rising inventory.
15:34There are some things that look not so good,
15:36like mortgage rates.
15:37Right.
15:38How are you thinking about 2025
15:41and positioning Sierra Pacific
15:43so that no matter what happens
15:44with things that we can't really control,
15:47Sierra Pacific is going to be successful?
15:50I actually think that we're well on our way.
15:52We have been really working hard
15:54to set ourselves up for the market,
15:56quite honestly, going up or down.
15:58And you have to be nimble.
16:01And so we're setting that foundation
16:04that we can be very nimble up and down,
16:06working with making sure
16:08that we have the adequate people staffed
16:11to do what we need.
16:13We are laying the groundwork
16:15for a lot of new initiatives
16:17and making that process smoother.
16:20And then we're also working with offshore,
16:22which is easier to bring up or down as you need.
16:25Yep.
16:26That makes a ton of sense.
16:27Well, Susie, this has been great.
16:29I'm so glad we had a chance to do this in person.
16:31Well, thank you.
16:32Me too.
16:33So always great.
16:34And great to meet you in person.
16:35Yes, you too.
16:36You too.
16:37Thank you for inviting me.
16:38Yep.