5 Questions with Jason Madiedo
Jason Madiedo is the president and CEO of Alterra Group, LLC, a minority-owned top U.S. mortgage bank and the second-largest Hispanic-owned mortgage company in the country, with loan coverage in 30 U.S. states. Alterra strives to represent the underserved in the mortgage industry, specifically serving the Hispanic community to help build wealth through homeownership. Alterra was voted by Mortgage Tech Magazine as one of the Top Tech Savvy Companies along with one of the fastest-growing by Hispanic Business Magazine.
He is very passionate about assisting underserved market consumers who have worked hard to achieve the American dream, and he has served as national president for the National Association for Hispanic Real Estate Professionals (NAHREP) – Nevada.
1) When you look through your crystal ball, what does the first-time homeowner of tomorrow look like, and how does the system need to change in order to be prepared?
If tomorrow is five to 10 years from now, then it will be even more diverse from both an ethnic and technical requirement perspective. The first-time homebuyer will be a mix of immigrants with thin credit profiles. And lenders will have the desire to sit with tech-savvy, variable-income-sourced first-time homebuyers who want optics and transparency into the entire transaction along with the ability to text and “chat” for service and consult with a professional when the process gets tough. As we look for ways to streamline processes, we will need to serve the first-time homebuyer of the future however he or she wants to be served.
2) Much has been said and written about millennials and Gen Zers’ desire (or lack of desire) to be a homeowner. Are you seeing demand for homes among these consumers?
Yes, just as much as the past first-time homebuyer. In some markets, there even is a sense of “fear of missing out.” But we also deal with a majority of Hispanic borrowers at Alterra, so it may be different elsewhere.
3) It appears that GSE reform may actually happen based on a report from the Treasury. What factors should policymakers keep in mind as they reform the current state of the GSEs?
Access to credit, cost, affordable lending products and reasonable interest rates that would not massively disrupt home values.
4) FHFA just finalized a rule that may finally deliver competition between credit score model developers for use in GSE-purchased loans. How do you think this may impact your business, the industry, consumers, etc.?
Greatly – from scoring people who are currently not scored to increasing affordability for those people inappropriately scored.
5) Where else could innovation help improve the mortgage process for lenders and the consumers they serve?
We, as lenders, need to get better at implementing the tools that are already out there.