In an industry with market volatility, regulatory changes and fast-paced technological innovation, lenders need a competitive edge. Allison LaForgia sits down with David Bernard to discuss how Western Alliance Bank’s Specialized Mortgage Services group combines innovation with a relationship-driven strategy to redefine the mortgage experience.
The conversation also explores the lessons Western Alliance Bank’s learned from recent industry shifts and how collaboration with AmeriHome Mortgage creates new opportunities for clients. Looking ahead to 2026, David shares why he’s optimistic about the future of mortgage lending and how Western Alliance is positioning itself to lead the next cycle with technology, relationships, and operational excellence.
#mortgagebanking #fintech #warehouselending #mortgagelending
The conversation also explores the lessons Western Alliance Bank’s learned from recent industry shifts and how collaboration with AmeriHome Mortgage creates new opportunities for clients. Looking ahead to 2026, David shares why he’s optimistic about the future of mortgage lending and how Western Alliance is positioning itself to lead the next cycle with technology, relationships, and operational excellence.
#mortgagebanking #fintech #warehouselending #mortgagelending
Category
🗞
NewsTranscript
00:00From Las Vegas, Nevada, I'm Allison LaForgia, Managing Editor of HousingWire's Content
00:11Studio, and today I am with David Bernard, Senior Managing Director of Specialized Mortgage Services
00:17at Western Alliance Bank. Thank you so much for being with me today. Thank you for having us,
00:22Allison. I appreciate it. So, David, I want to start with your background and how you came into
00:26your role at Western Alliance Bank on the Specialized Mortgage Services team.
00:31Yeah, it's been a while. I mean, it's in the industry over 20 years, coming up on 25 years,
00:37a couple of different banks of different sizes, but I've been, this is my 12th year at our bank,
00:44and just our bank started mortgage warehouse lending in 2009. The gentleman that started it
00:50is the Chief Banking Officer at the bank. His name is Steve Curley, and there was kind of an outflow of
00:56lenders leaving the space during the great financial crisis. Our bank's headquartered in
01:00Phoenix, and there's a lot of mortgage activity in the Southwest, and so we stood up a warehouse group,
01:06and it was growing and evolving, and I joined the bank at the end of 2013 as, you know, we were kind
01:12of growing that platform and ready to kind of take it to the next level. So, you know, Steve and I grew
01:18that together. Now, Western Alliance Bank has built a reputation for being both innovative,
01:25and relationship-driven, which is pretty special. Yeah. So, could you talk to me about what the core
01:31value proposition is behind the Specialized Mortgage Services Group construct, and really,
01:38how does it set you apart from traditional mortgage banks? That's a good question. So, our bank is a
01:43commercial bank. So, when I joined, our bank was about 10 billion dollars. This is at the end of 13,
01:51kind of purposely stagnating there, ready to cross over that 10 billion dollar threshold. We're a 90
01:57billion dollar bank today, and you know, it's a commercial bank, so there wasn't a mix of consumer
02:02banking, kind of retail, and commercial. It was commercial because hard to really compete at a
02:09scale level with money center banks and super regional banks doing a lot of retail. So, we kind of took that same
02:16proxy in building, you know, our group. We launched a warehouse lending platform. We didn't intend on
02:25being all things to everyone. Our group's pretty price competitive, but I wouldn't call us a price
02:31leader, per se. I would call us a leader in listening, being creative, following through, and forming
02:39long-term strategic partnerships. That's really been our kind of ethos. That's been our value
02:45proposition of the marketplace. When I joined beyond traditional warehouse lending, the risk
02:52committee had approved a couple of different kind of debt products. MSR financing, we do something called
02:58note financing, and so we had kind of multiple lending vehicles to face the marketplace with,
03:06with, and the thesis was that some were going to be more or less applicable based on volumes, the rate
03:12environment, and how independent mortgage banks grew, whether they held servicing, whether they
03:17needed financing on different kinds, an expanded array of mortgage products. And so over time, we were
03:24not trying to be all things to everyone. We were just trying to have a full pallet of products and
03:29services that we could grow with, you know, our business partners.
03:32It sounds like the team that you built has experience that spans mortgage finance. So I would
03:40love if you could break down some of the key components that define the specialized mortgage
03:46services group and how that contributes to your overall mission of serving clients across the
03:53mortgage life cycle. So when I, I knew Steve, um, just from being in the industry. So when I came down
04:01and spent a few days in Phoenix, learning more about the bank, you know, it was pretty quick to me like,
04:06gosh, this is a flat dynamic organization. And, um, so the bank's still the same. I mean,
04:13it feels the same. So what we've tried to do is tremendous growth.
04:17Yeah. Despite growth, it's still, you know, I went down and I walked down and I go, geez,
04:22you know, this feels like seventies community banking. Like I could, I could, you know, our
04:27customers still talk to our C-suite, the C-suite travels. We have customers come in, we sit down with
04:33them. So what we endeavor to do is really build relationships throughout our organization. If we're
04:39doing, uh, our job in, in, in being holistic, you know, our customers know our credit group, not just
04:47the credit analyst that covers them. They know the credit manager. They know the assistant manager.
04:52They know the operations team. They know their funders. They know the people that handle their
04:56collateral. They know the treasury management team that they work with and open up accounts.
05:01And so, um, when they come in, we, we have, we have kind of, uh, group meetings,
05:07we provide feedback. What can we do better? What ideas do you have that we can try to work on
05:12together and be strategic partners? So it's really been, I get this question a lot. It's really
05:17been three things as simple as this. And it sounds like I'm being trite. It's been listening,
05:24coming up with strategic plans and following through. And, and, you know, 85, 90% of the time,
05:30we, we do some pretty special things. And I think our partners appreciate it, us for it. That's what
05:35we're known for in the marketplace. And the, in the 10 to 15% of the time, we can't do that.
05:40We give somebody a quick note and say, you know, that I, I understand what your need is. I don't know
05:45if that fits what we can get done from a credit perspective, um, or, or just in the time that
05:50you need it done. And, and respectfully, like you need to go find a solution. You should find a
05:55solution somewhere else, but seven and eight of the time we, we end up being that person. And that
06:00makes it exciting for everybody. So we, we share that ethos with our team. It makes them feel excited.
06:08Um, we, we're transparent with them. We share successes. We, we, we highly promote interactivity
06:14with our customers. So they feel, you know, part of that success and that growth. And, and,
06:19and that's led to the success. Now, it sounds like you've built a culture around that banking
06:26feeling that everybody really loved in community banking. When you used to walk into your bank and
06:30know your banker and be able to ask questions and say, Hey, David, you've great experience here.
06:38Be my advocate, be my advisor. And I'm really curious to get your perspective because we've gone through
06:44a year in 2025, that's been transformative for the industry. So I'd love to, if you could walk me
06:50through how this year has been different for Western Alliance bank, maybe compared to what we had seen in
06:562022 through 2024. This is a, that's, it's an interesting, I'll give you an interesting
07:02statistic that surprised me. So through the first three quarters of this year,
07:06we've had more funding growth than we had in 2021 when rates were at historic low during COVID.
07:15Really?
07:15With, um, actually fewer customers. So how, how was it? It was our value proposition. So, um,
07:24we, we never intended to be all things to everyone and be this monoline conforming funding lender.
07:30We endeavor to understand different products, different markets, the investors, the execution
07:36on the, on the, on the secondary, the capital market side. And then, so we fund a wide array,
07:41not to wander outside any credit risk guardrails, but when you actually listen and roll up your sleeves
07:47and put some elbow grease into structuring warehouse lines or MSR financing or no financing lines,
07:53or working on somebody's treasury need, then, um, you develop these relationships and then they tend to
08:02be longstanding. So, you know, we, we started funding non-QM, for example, in 2013, when I joined,
08:10we fund seconds, HELOCs for the right customers that have a core competency. We do construction lending
08:16and bridge lending and, you know, early buyouts. And we do hospital loans and, uh, cash buyers. If,
08:22if our customers have those programs and want to leverage them on a warehouse line. So I think as
08:27the market, as rates went up in the last three, three and a half years, and people weren't relying
08:32on just agency refi, they had to broaden out their product spectrum. We were already doing that.
08:38So now it's our lines, uh, are utilized on a more regular basis across their tranche spectrum. And,
08:45um, you know, our outstanding set stayed up. And I think when people have looked at who's been my
08:50partners in good times and bad times, then they'll say, you know, I had six lenders and I really only
08:55need four or have four lenders and I only need three. And we've grown our market share while the
09:00market's kind of receded a bit. Now you just talked about partnerships and I know that Western
09:06Alliance Bank and AmeriHome Mortgage have developed some strong synergies across mortgage and servicing.
09:14How are those integrations driving new efficiencies and opportunities in addition to the ones that
09:19you've just mentioned previously in our conversation for clients within your platform?
09:24MeriHome is the largest bank owned correspondent lender. I think we're the third or fourth largest
09:30mortgage company in the country. And they were a large client. One of our largest clients
09:36before the bank acquired them in 2021, uh, 2021 into 2022, you know, they're, they've got an amazing
09:43platform, um, bidding loans, buying loans, and a very similar, um, mindset about customer service and
09:50long-term customer partnerships relationships. So the culturally that's always the hardest fit when
09:56you have an acquisition and you have two companies and, and, and, and strong hard charging groups merge,
10:02how's the culture going to work? It was very like-minded. We had some,
10:05Okay. We had an early thought about that because they were a customer and we knew
10:09we actually aligned very well. Yeah. So we had a little bit of a sneak peek there.
10:13And then when it did, and we still have a lot of runway to grow with these synergies,
10:18but you know, when we provide warehouse leverage, they have an ex expanded correspondent product set.
10:24So they launched non-QM this year as a product, they'll be launching, you know, helox and arms and
10:31other exciting things that we fund. So the common customer, our borrower and their seller can utilize
10:38warehouse leverage to more efficiently sell them loans by funding through us. There's some economic
10:43benefits to the customers there, um, and advanced rate benefits there. So there's some real wins for
10:49the customer. There's better synergies. And then in their post-closing their funding groups, you know,
10:55there's a tighter transaction. So they actually have a savings of time, like loans get purchased
11:01quicker. You know, we fund them, they're going to our conduit. So there's some economies that they can
11:06pick up through our partnership. Now you just mentioned growth opportunities from partnerships,
11:11and you've mentioned the growth that Western Alliance Bank has had in the past several years,
11:17even most recently in 2025. Now that's pretty impressive given that we're an environment
11:24noted by volatility, regulatory and technology at where we have all of these regulations that are
11:31coming together that make growth, that can make growth particularly difficult. So what do you believe
11:36distinguishes Western Alliance Bank as a leader in the industry? What's given you guys the legs for this
11:43growth? I think the relationships, it all comes down to relationships. You could have
11:47as much technology automation and, and, and, and borrowers, you know, independent mortgage bankers
11:53can look at warehouse lenders as, ah, that's my, my banker. That's who funds my loans, you know,
11:59in kind of a commoditized asset. But if you're the right customer fit for us, you're viewed as a
12:04strategic partner. The biggest compliment any banker can get is when their customer, especially this
12:10time of year, we're getting coming up on end of year, people are looking at their budgets, their
12:14strategies. And if they invite their banker to be part of their think tank, Hey, I'd love to bounce
12:20something off you, Alison. We're thinking of expanding here. We're thinking of going to new
12:24markets, new products, raising capital. How can you help us structure that? Can I just get your
12:29thoughts as a banking partner on that? That's the biggest compliment you can get. Then you're part of
12:33their franchise value. And then, um, you know, as they have different needs that come up, you know, we, we can align with
12:41those needs. So over the last three years, probably arguably back when the government tried to kind of
12:46enforce some quantitative tightening in 17 and 18, those were kind of lean years. And then they
12:52kind of backed off our borrowers. When they engage with our banking partners, not only our banking
12:57partners, we have a, we have a treasury team in our group. So, you know, our team is made up to be
13:02holistic, um, and solution oriented. So, you know, we've got the warehouse lending group. We do MSR
13:08financing with the MSR financing. We've got an entire treasury team that sits in our business line
13:14and handles large, uh, custodial escrow accounts. A large percentage of our customers have their core
13:20operating accounts with us. We do corporate credit card. We have customers that do self-servicing or
13:25that are sub-servicers. They remit their T and I and P and I's through the bank. We're their core banking
13:31partner. Um, and we build out, we have a tech group in our, in our group that builds out the treasury
13:37manager. That part of the industry is evolving very rapidly with technology. And that's exciting.
13:42It's exciting for us to work on. So we build out new efficiencies, payment rails. Um, they have
13:48technology partners that, uh, like a modern treasury, somebody that's helping them move money more
13:53efficiently. And we build with them at the same time. So when our customers, you know, are growing
13:58and, and, and kind of more automating, uh, their processes, we've already done some of this, uh,
14:04foundational, um, work to make that work inside so we can kind of turn on and off
14:09new partners as technology evolves. So that, you know, that's kind of our value proposition.
14:14So that's why in a year where it's kind of, you know, it's been, um, better than in prior years,
14:20but still challenging for IMBs, you know, that, that we've continued to grow our wallet share and grow
14:26our customer base and, and, and continue to be excited. I would say back in 17 and 18, when the
14:32government tried to kind of, uh, ease off of the quantitative easing and enforce some quantitative
14:38tightening, the market didn't react well to that. So they kind of backed off. IMBs got their first
14:43taste of looking at costs, hard costs and, um, cutting and doing reductions in force and looking
14:51at their spending. So they had already had a little bit of a foray into endeavoring that exercise.
14:58When rates went up in the spring of 2022, they really had to enforce that. And customers were
15:05doing two, three cuts a year, year over year, because the volume was tough to come by. It was
15:10all purchased and it was higher rates. So they've been through these cycles. I think they, they, they,
15:15they have their companies to where they're going to be profitable and, and, and, and then just move
15:21forward from here. So I have to ask you just touched on a couple of different cycles that we've
15:26gone through the evolution of how Western Alliance bank has handled those cycles. We're about to head
15:31into 2026. How is Western Alliance bank positioning itself for the next cycle? And what gives you
15:37optimism about where the industry is heading? I think, well, for some of the pieces we touched
15:42on before, I think there's a growing, um, breadth of products. People are learning about that. Our industry
15:50is supported by some interesting, um, you know, buying options. Uh, you know, there's flow, there's
15:55bulk, there's securitization, there's, there's private equity. Um, there's, um, fund money, there's
16:02insurance money. So, you know, the correspondence space is kind of expanded right now. Um, and the,
16:08and the customers again have really done a nice job optimizing the operating efficiency in their
16:13companies. Uh, those that have gone through and looked at new technologies or looked at offshoring for
16:18efficiencies. They've had to endeavor going through those exercises. So they've done that. So I look
16:23at 2026, um, optimistically, I don't think that, um, it's going to be easy for, uh, customers to grow.
16:32I think, you know, like the NBA is predicting, I kind of agree with, uh, the rate environment that
16:38they're predicting is going to be kind of low sixes, six and a quarter, six and three eights, you know,
16:43and, and, and IMBs are going to have to close loans, you know, in and around there, there's more arms,
16:48there's more efforts to tap into some of the untouched equity, uh, in loans that were done
16:53during COVID in low rate environments. So, you know, HELOC, arms, some refinance, some cash out.
17:00I think people are getting the, the consumers getting used to that type of product, the six,
17:05like a six handle. If they had a high five handle, I think maybe all the better, but the NBA is
17:10predicting, I think about 2.2 trillion in mortgage origination in, uh, 2026. And the, the industry,
17:19the new normal is now. And I think the consumer is also identifying with that.
17:22David, thank you so much for spending time with me today, talking about the specialized mortgage
17:28services team at Western Alliance Bank. It sounds like you guys have had a very successful 2025.
17:33I can't wait to see what 2026 has in store for you.
17:35Thank you, Alison. And, uh, thanks housing wire for, uh, hosting us today and for all you do
17:40to advocate for our industry. We sincerely appreciate it.
17:42Thank you. Thank you.
Recommended
18:02
|
Up next
10:00
12:47
35:35
Be the first to comment