This piece originally appeared in the August 2024 edition of MortgagePoint magazine, online now.
Tony Julianelle, CEO of Atlas Real Estate has more than 25 years of executive leadership experience in the finance and real estate industry. Real Atlas Estate is a full-service real estate company specializing in property management, institutional acquisitions, and buy/sell brokerage. Before joining Atlas, he was a senior leader at a top four bank, overseeing cross-functional teams in the United States and overseas. He leads the overall strategy and direction of Atlas, while maintaining a commitment to the firm’s values and culture.
Since its inception in 2013, the company has made a commitment to Uplift Humanity Through Real Estate. With offices in 10 states nationwide, Atlas has $2.5 billion in real estate assets under management, and manages more than 6,000 residential units.
MortgagePoint recently had the opportunity to speak with Tony to discuss how he got his start, the state of the mortgage finance space, and what it takes to make it in an up and down marketplace.
Q: How did you first get your start in the industry?
Tony Julianelle: I started in 1998 as a Loan Originator for what became Wells Fargo Home Mortgage. I was able to be a part of the rise of the company to becoming one of the largest originators and servicers in the nation. and played many roles during my time there, culminating in a senior leadership role overseeing production across a large geographic region. I spent more than 20 years in mortgage origination and leadership, and I loved it.
Q: What initially attracted you to the mortgage finance space?
Tony Julianelle: No one dreams of being a Loan Officer when they are a kid! I was originally attracted to the business because of the entrepreneurial spirit that allowed you to run it like you owned it—a lot of that changed after the great financial crisis and the increased regulation that followed—most of it being necessary and good.
What kept me in the business was the opportunities I had to make a tangible difference in people’s lives. I still have a note from a borrower I did a loan for in my first year, where, during the loan application, we called into his company and enrolled him in their matching 401(k).
Years later, he mailed me a copy of his statement with a note on it about what a difference it had made. I have been invited to weddings, birthdays, and even Thanksgiving dinners a few times. Being a part of a family, and making a house a home, is pretty remarkable.
Q: In the current market, what do you see as possible market corrections to alleviate the affordability crisis?
Tony Julianelle: Unfortunately, there is a market reality at play that will not be overcome by an outside force … it’s the reality of supply and demand. As long as the U.S. housing market is under-supplied by over a million homes, demand will outpace supply and prices will continue to climb. Even in this environment—with interest rates at 25-year highs—values have not seen any meaningful depreciation, and in most markets, have continued to climb, albeit, at a slower pace. Of course, if the United States were to experience a prolonged recession or a spike in unemployment, that may create downward pressure on pricing, but market fundamentals do not currently point toward this.
Q: What suggestions do you have for renters who are on the outside of the home buying market looking in?
Tony Julianelle: A few things. First, decide what’s important to you. If you want to own a home, you can, but it will take sacrifices. I’m a big believer in home ownership and real estate ownership as a path to wealth accumulation. But, you probably should not be looking for a dream house. You should be looking for something you can buy and rent rooms to roommates, or even better, a multi-unit property where you can get FHA (Federal Housing Administration) financing as an owner-occupant with a low down payment, live in one unit, and rent the others out. You will also likely need to drive a less expensive car, live with last year’s clothes, and cook a lot of meals at home.
There are a lot of programs to help first-time homebuyers, so do your research. One thing we are doing for our residents is called Project Uplift. If you rent a single-family home that we own and operate for four years, at the end of those four years, you may have access to enough money to make up a downpayment on a new home. It’s part of our commitment to home ownership and to partnering with our residents for their flourishing.
And, keep in mind that while a 7% interest rate may seem high, your interest rate is 100% when you are renting.
Q: What course do you feel rates will take for the remainder of 2024?
Tony Julianelle: Right now, it seems the market has priced in a rate cut in September as fairly certain … but that still feels optimistic to me. We need to see a little more data on inflation cooling and of course, the election will play a crucial role in economic policy through the rest of 2024. We try to keep it simple in our organization and make decisions about what is true now, not what we hope will be true at some point in the future.
Q: Do you see a shift in housing policies come November based on the outcome of the Presidential Elections?
Tony Julianelle: This seems unlikely. If there is a divided government, which seems likely one way or another, then typically the status quo carries on. There is a lot of bluster in an election year, like the recent proposal to cap rent increases in some circumstances through federal legislation. I do not see this getting any traction in reality. I would like to see some additional incentives around home ownership in the tax code, and I see this as the most likely outcome.
Q: What tools do you feel a mortgage professional needs in order to survive and thrive in today’s marketplace?
Tony Julianelle: Mortgage tools have become commodities—easy to get, and everyone has them. The key to success in the mortgage business is just two things—get up each day, and do the same things over and over again. Consistent execution of whatever your plan is will drive results. And, always say what you mean and do what you say. Never make a promise you cannot actually cause to occur. Your reputation is all you have, so treat it like your most valuable asset.
Q: What advice would you give to anyone looking to break into the mortgage finance industry today?
Tony Julianelle: Start out on the fulfillment side of the business. The best loan originators I have seen in my career are not just salespeople … they know the process in and out because they have done it. Get a job as a processor, move up to a closer, and then, if you can, do some underwriting. Commit a year or two to this before you make the leap to originating loans. Become a student of the business, and actually know what you are doing. You cannot afford not to. And, find a great mentor … my early mentors made all of the difference for me.
