When most people think about mortgages, they picture the smiling loan officer bringing breakfast to the office or the smooth closing table handoff. What they don’t see is the massive amount of work that happens behind the scenes—the technical details, the financial risk, and the leadership lessons that come with running a mortgage company.
I recently sat down with Steve Shoemaker, founder of Ellason Mortgage, to pull back the curtain on what it really takes to build (and grow) a boutique mortgage company in today’s market.
From Iowa Fields to Birmingham Boardrooms
Steve’s story starts far from real estate finance. Growing up in Iowa, his first job was detasseling corn—a detail he jokes most people will have to Google. Watching bankers in suits convinced him there was another path.
That path led him into mortgage lending in the late ’80s, eventually moving him to Birmingham in the mid-90s. After a long career at a major regional bank, he and a group of partners decided to take over a smaller company. The result: Ellason Mortgage, now licensed in five states and growing with a focus on purchase loans and relationships with realtors and builders.
The Unseen Work
“Most people assume the mortgage business is just about relationships and lunches,” Steve told me. “But no one thinks about testing 250 online applications to make sure the system works, or securing a $20 million warehouse line to fund closings at the end of the month.”
Every loan involves dozens of steps: online applications, document uploads, approvals, closings, investor packaging, and risk analysis. It’s the kind of unglamorous work that makes the whole system function—much like building a car you expect to run the moment you turn the key.
Building the Right Team
Steve is the first to admit his leadership style was shaped by trial and error.
* Early on, he pushed his team too hard—“like the old Soviet style,” as he calls it—only to see burnout.
* Then he tried buying lunch every day, but culture can’t be built on free meals.
* Hiring family members of top agents? Also a recipe for failure.
Today, his focus is much narrower: finding the rare people who combine math skills with relationship skills, who can be coached, and who source their own business.
“We’re not hiring ten people a month,” Steve said. “We’re looking for the one who fits and makes everyone else better.”
Why Culture Matters More Than Basis Points
In real estate and lending alike, money matters—but culture often matters more.
At ARC Realty, we see it all the time. Agents rarely leave over a few basis points. They leave (or stay) because of how they’re treated, whether they feel supported, and whether they see a fair return on their effort.
Ellason Mortgage operates the same way. Steve coaches every loan officer weekly, emphasizing communication with borrowers and accountability on pipeline management. “If I’m making proactive calls early in the process,” he said, “I don’t get emergency calls at the end of the month.”
What’s Next in Mortgages
We also talked about some of the bigger industry shifts:
* Credit Scoring: New models like VantageScore may soon include utility or cell phone payments, potentially opening doors for first-time buyers without traditional credit.
* Student Loans: Deferred loans coming back onto credit reports have already dropped some borrowers’ scores dramatically, creating new hurdles.
* Fannie & Freddie: Discussions about taking them public could reshape accountability and profitability in the industry.
* Rates: Don’t expect dramatic drops anytime soon—small, gentle decreases are more likely than another refinance boom.
Final Word
Steve closed our conversation with a reminder that while technology and policy will always evolve, some things won’t change: communication, relationships, and doing the right thing for the borrower every single time.
If you want to learn more about Ellason Mortgage, visit EllasonMortgage.com.
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