Mortgage Firm CEO Tells Employees: ‘Do The Right Thing’

By Jennifer Jope Reporter

While most of his friends were becoming bankers and stockbrokers after college, David Black was unsure he was the “salesman” type. He describes his entrance into the mortgage industry as happening “by chance,” but almost 20 years later, Black is the owner of a Bay State mortgage company.

After graduating from the University of Vermont with a bachelor’s degree in mathematics in 1985, Black got his first job, making $11,000 a year, as a processor at Home Mortgage Corp. in Brookline. After about eight months, Black left the firm for Northeastern Mortgage Co., one of the largest mortgage companies in Massachusetts, where he became an underwriter and also ran the Wholesale Lending Department.

“I got a view into the other side of the equation,” Black said.

In October 1987, Black decided to become his own boss and started First New England Mortgage in Wellesley. Black recalled some of the differences between then and now in the lending industry. “There wasn’t licensing back then,” he said.

Although he’s been chief executive officer at FNE, now based in Newton, for almost two decades, Black just recently stopped originating loans himself. When he gets calls from old clients, he refers them to his loan officers. These days, Black is focusing on growing his company.

“[I want to] push us toward growing,” said Black.

‘Pretty Nasty Things’ The mortgage industry has evolved since 1987 and Black said automation has been a positive change. “The whole thing, in general, has become more automated,” said Black.

Earlier in his career, Black said, it might be weeks before he could give customers an answer about their loan. Today, he can provide an answer while on the phone with a client by consulting Freddie Mac and Fannie Mae’s automated underwriter.

There are also the challenges of being in an industry that is so saturated. Black said there are thousands of companies that he must compete against, some of which are predatory lenders.

“They do some pretty nasty things to their customers,” said Black.

But he tries to keep his loan officers encouraged.

“There’s plenty of good business. There’s no need to chase the bad business,” he said.

Rate increases will also be a hurdle for Black and his company to overcome. The challenge, he said, will be to find a way to survive the next few years.

Besides operating one of the largest mortgage brokers in the country, providing more than $1.4 billion in financing last year with offices in Florida, Texas, Arizona and California, Black has other things on his plate.

He is a past director and current member of the Massachusetts Mortgage Association. Black is also a member of the Massachusetts Mortgage Bankers Association, the National Association of Mortgage Brokers, the Better Business Bureau and the Newton, Needham, Waltham and Plymouth chambers of commerce. Additionally, he is a partner in Loanbright.com, an online customer acquisition solution for the mortgage industry.

Black also has a long-term partnership with Habitat for Humanity.

Although he never expected to be in the mortgage business, Black said he truly enjoys what he does each day.

“I enjoy the people,” Black said, adding that it is rewarding to finance people’s lives. “Everyone you know needs a mortgage.”

While being self-employed has its perks, Black said he especially likes it because everything that happens with the company, good and bad, reflects back on him. But he doesn’t like to take credit for the positive aspects of the company. “It’s really not me if [things] go [well],” said Black.

Looking back at a career that spans 20 years, Black said he is most proud of his company’s reputation. Although it can be a “tough industry,” Black said he always stresses to his employees to “do the right thing” and he believes that is why FNE has such a strong reputation. FNE has earned national awards from CitiMortgage, Fannie Mae, the Wall Street Journal and Money Magazine.

If Black has his way, FNE will continue to grow in the future. Currently, FNE has almost 90 employees, including more than 50 loan officers, and more than 3,000 customers.

“Our idea is we want to get bigger,” he said, adding that his mission is to obtain and maintain good loan officers. “We’ve got a great group of managers … we’ve got a great group of loan officers.”

Black lives in Needham.

David Black has been the President of First New England Mortgage since 1987. FNE, a privately held company headquartered in Newton, Mass., holds mortgage lender or broker licenses in 26 states, with offices in Florida, Texas, California, and Arizona. For more information, visit www.fne.com or call 617-244-3114.

Project to combine affordable housing, open space

By Christopher Moore / Daily News Staff Wednesday, June 1, 2005

NEWTON -- Habitat for Humanity is scheduled to begin its first-ever project in Newton this summer, thanks to the foresight of taxpayers and the legacy of one resident.

In 2003, a nonprofit organization called the Newton Conservators paid $1.1 million for a property at 76 Webster Park. Until January of that year, the property had been owned and occupied by longtime resident Irene Forte, a music teacher in Newton who died at the age of 104.

"She was quite a lady," said Ted Kuklinski, vice president of the Conservators. "I'd known her for many years, and she'd expressed a desire for her property to be used as open space."

Fortunately, Forte had made that desire known to her nephew, who became the executor of her estate.

"He gave us the first option on the property," said Kuklinski.

Through an agreement with the Newton Housing Authority, the Conservators used money from the Community Preservation Act fund to buy the land and the house on it, built in 1925. The fund, approved by Newton voters in 2001, is fueled by a 1 percent property tax surcharge and matched each year by state contributions. So far, the CPA has raised about $3.6 million per year.

The fund is dedicated to projects that involve housing, open space, historic preservation or recreation.

"The Conservators had identified this property as one of the critical properties in Newton, because of its proximity to Dolan Pond," said Jeff Sacks, chairman of the Housing Authority's board of commissioners. "They saw this as a chance to protect the park by getting this upland area."

As part of the agreement with the Housing Authority, the Conservators are in the process of deeding a portion of the property to Habitat for Humanity Greater Boston, which plans to build two side-by-side townhouse units on the land, both of which will be sold to low- to moderate-income homebuyers.

The rest of the property will go to the city.

The Newton Housing Authority will spend about $100,000 to convert Forte's house into an affordable family housing rental. Roughly two-thirds of the land will be preserved as open space and controlled by the Newton Conservation Commission.

"Without the CPA, this project would not have been possible," said Sacks. "It would've been developed like everything else in Newton is getting developed. The availability of CPA funding presented this tremendous open space acquisition and affordable housing project."

David Lopes, chief operating officer for Habitat for Humanity Greater Boston, said the townhouses would likely be priced between $150,000 and $160,000. At market rate, Lopes said the units would sell for "at least $425,000." He anticipates construction will begin in late June.

"There's always been some concern about creating affordable housing in Newton," said Lopes. "A lot of the people who work in Newton and have lower incomes could never afford to live in Newton."

Newton-based First New England Mortgage donated $25,000 to the project in 2004. Habitat is hoping to raise an additional $400,000 by this summer, some of which will be in-kind donations.

"The Carpenters Local 275 is donating all the labor to make the panels for the house and erect them," said Lopes. "Unilock is the company that's going to be donating some concrete pavers."

With the help of First New England, Habitat is also planning a fund-raising kickoff ceremony today at the Newton Sheraton.

"This one is basically geared around the business community, to get them on board," said Lopes. "But, obviously, we would not turn anyone away."

Sacks said Newton has previously used CPA money to purchase a property on Wyman Street that will house 10 low-income families.

"It's a phenomenal property, right in Waban Center," said Sacks. "The owner was going to convert it to condominium units, but we were able to negotiate a price of $3.5 million. It was in very good condition, and with a minimum amount of maintenance, we could put it online. And that's what we've done."

Sacks said the Housing Authority has been communicating with Habitat for Humanity for at least the past five years, trying to find a suitable project. When the Webster Park property became available, the Housing Authority jumped at it.

"It really was our vision of trying to do business in new ways," he said. "We really have recognized that, in order to produce affordable housing in Newton, we have to take opportunities when they come."

( Christopher Moore is a staff writer for the Daily News Tribune. He can be reached at cmoore@cnc.com or 781-398-8009. )