NewDay USA stays true to its mission of serving American veterans and their families
NewDay USA operates with one goal in mind: to serve those who have served our country. The Veterans Affairs (VA) home loan mortgage lender helps veterans achieve the dream of financial security and has assisted more than 75,000 military families nationwide secure $21 billion over the course of its 20-plus-year history.
The Fulton, Md.,-based company helps veterans secure cashout loans, purchase property, and lower existing mortgage payments.
For COO Michael Oursler, what sets NewDay USA apart from the competition is its commitment to American service members.
“For us, it’s not just about business, profitability, and numbers. We focus on each individual veteran family that we’re serving,” Oursler said. “I think it helps to support what we’re trying to do. We’re trying to make a difference in each veteran family’s life.”
Master of its craft
NewDay USA differentiates itself through a laser focus on the VA loans business. While many home-loan lenders deal primarily with Federal Housing Administration (FHA) and Conventional loans, NewDay USA does around 99% of its business securing VA loans for its customers.
“To be able to own and master a product gives you a leg up,” Oursler said. “We know every intricacy of the VA home loan benefits and that allows us to deliver better service.”
A VA loan is similar to Conventional loans or FHA loans, except with VA loans the borrower does not need to include a down payment on their purchase.
“The VA mortgage product is a unique product, and it’s a side project for many companies because they do so much Conventional and FHA business,” Oursler said. “The VA product ultimately ends up becoming an afterthought in the pipeline. And that’s not the level of service we believe our service members deserve. So, we specialize.”
Profit for good
This focus on a previously overlooked market hasn't just expanded options for veterans, it's also been good for growth. NewDay USA more than doubled its revenue from 2019 to $315 million in 2020, and is expected to earn $500 million in revenue this year while helping serve a projected 40,000 veteran families.
Recognizing the unique hardships faced by many veterans, NewDay USA is committed to sharing its success with the veteran community. The company donates a portion of its net income to the NewDay USA Foundation, which gives back to military families through volunteering and scholarships.
“(Helping veterans is) important because they deserve it,” Oursler said. “Our service members put their life on the line to defend our freedoms. In our opinion, we need to do everything in our power so they and their families can pursue the American dream of owning a home.”
Strength in numbers
The company's growth and veteran-focused mission have also made it an attractive place to work for a team of more than 700 employees, a number projected to increase to more than 1,200 by year’s end.
A key differentiator for NewDay USA is the company's focus on training. Underwriters go through a 24-month applied curriculum at NewDay USA University which trains prospective agents directly out of college.
Oursler, a product of the program himself, said the university gives new hires all the tools they’ll need to succeed in the mortgage industry.
“It’s goes above and beyond the minimum requirements for a license, and by making that investment we see significantly better success from the students,” he said. “They ramp up and find their own success very early in their career because of the investment that we’re making in them.”
The company is also seeking to enhance its growth via an expansion to an office in Palm Beach, Fla., which is expected to bring around 600 high-paying jobs to the area.
Helping Veterans Stand Out
The state of the housing market has made purchasing a home a struggle for prospective new buyers, which can be even more difficult when your offer is attached to a VA loan due to what Oursler describes as misguided stigmas attached to the program. “There's an incorrect belief that VA loans are somehow less credit-worthy, more likely to not close … and we actually see the complete opposite,” he said. “If you’re working with a good lender that understands the VA program, it is an excellent product.”
NewDay USA helps veteran families overcome this misunderstanding by offering a full underwrite before they go house-hunting, getting them completely credit- and income-approved so the seller can feel confident they have an offer from a good buyer that is going to close on time.
“If you’re a mortgage company that 90% of your business is not VA, when you do work on a VA loan, you’re a little bit less efficient because it’s just not natural to you,” he said. “At NewDay, our VA loans close on time, period.”