In May, Dan Cutaia became the new president and chief operating officer of Fairway Independent Mortgage Corp., headquartered in Sun Prairie, Wis. Cutaia was previously the founder and president of Aucita Mortgage Capital, a firm specializing in the purchase and servicing of defective residential mortgage loans.
Needless to say, this is a very interesting time for anyone to take over the reins of a mortgage banking company. MortgageOrb spoke with Cutaia on the challenges he will be facing in his new role and the challenges the industry is facing in the near future.
Q: You have recently become president and chief operating officer of Fairway Independent Mortgage. What have been your initial priorities at the company?Â
Cutaia: Fairway is in a transformational phase, as is the industry as a whole. Fairway started out 12 years ago essentially as a broker organization, growing to become a very large company. Now it is in the process of transforming into an intermediate-sized mortgage banker. My job as president is to quickly build out the company's operations to recognize the transformation within Fairway and to adapt to the changes in the marketplace. Â
Q: How do you see the state of mortgage banking today? And where do you see the industry heading in the next 12 months?Â
Cutaia: This is a great production environment for old-school mortgage bankers that cut their teeth on Federal Housing Administration (FHA) and conventional agency business. Conversely, it's an extraordinarily difficult time for servicers, investors, quality control people and finance people.Â
In terms of loan products, the next 12 months may feel a lot like the late 1980s and early 1990s. But one thing has changed: In today's environment, we must take quality control very seriously.
Q: As a follow-up question, where do you see the secondary market heading in the next 12 months? Also, do you have faith in the GSEs being able to turn themselves around?Â
Cutaia: Once buyers perceive that home prices have sunk to their lowest, they will rush in and equilibrium will occur. Capital will again chase the market on the upswing.Â
When that perceived bottom will occur is anybody's guess. Until then, the markets will look, feel and smell a whole lot like they did ‘back in the day,’ before the rise of subprime and Alt-A.Â
Q: You have reached a new career peak, but there are many people who are just coming into the job market. What advice would you give to any new college graduates who may be considering a career in mortgage banking?Â
Cutaia: Peak? That's depressing! I'll quit when I think I've peaked! Anyway, I give the same advice to anyone starting out, regardless of education or industry: work harder than the guy next to you, be inquisitive, bring a good attitude and have fun. That's pretty much all it takes. Â
Q: Is this a good time to explore career opportunities within the industry?Â
Cutaia: It's always a good time. Good or bad markets do not make winners in the long haul.Â
