Five Questions With: James Gueltzow

Westerly-based The Washington Trust Co. announced last month it was opening a Darien, Conn., mortgage-production office, expanding its presence in the state. The office is managed by Washington Trust Mortgage Co. Executive Vice President James L. Gueltzow. In a recent interview with PBN, he discussed the new office and the intuition’s presence in the region.

PBN: You and your team have been working in Fairfield County, Conn., for the past year. How has business been?
GUELTZOW:
Washington Trust’s mortgage area has had great success in all three states in which we have offices: Rhode Island, Massachusetts and Connecticut. While we just opened an office in Darien, Conn., we’ve been lending in Fairfield County for more than a year, as our mortgage team was working out of a temporary office in Stamford, Conn. As a testament to our Connecticut success, we were recently named one of the fastest growing mortgage lenders in Connecticut according to the Commercial Record’s “Fast 50.” (Based on loan volume for the first six months of 2014.)

PBN: Fairfield County is one of the wealthiest counties in the nation. Do you approach your business the same way that you would if you were working in Rhode Island or eastern Connecticut?
GUELTZOW:
The key to Washington Trust’s mortgage success is our sales and service model, which doesn’t change whether the homebuyer lives in Rhode Island, Massachusetts or Connecticut. Each of our mortgage offices has a local processor, who works with homebuyers to ensure the loan processed quickly. All of our underwriting is done here in Rhode Island and we try to close loans within 30 days, which is faster than most of our competitors.

PBN: How large a part of Washington Trust’s mortgage business is located in Fairfield County? Do you expect that you will expand the services you offer out of the Darien office beyond mortgages, to, for example, wealth management? And if you expect to expand offerings, how will you determine the timing of that change?
GUELTZOW:
We’re relatively new to the Fairfield County market, so only a small percentage of our total mortgage production is from Fairfield County. We’ve had a mortgage office in Glastonbury, CT since 2011, so Washington Trust’s total Connecticut mortgage production has grown in recent years, as evidenced by the Commercial Record’s “Fast 50.” We also have a number of commercial lending and wealth management clients in Connecticut, so we are excited about the opportunities this office offers all of our lines of business.

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PBN: Is the continuing poor growth in the global economy having any effect on the residential real estate business, either in Rhode Island or where you are in Fairfield County? Why or why not?
GUELTZOW:
The mortgage business has been very active in recent years, as low interest rates led many homeowners to refinance. As the regional economy has improved and rates have remained low, the purchase market has picked up. Recent global events have not had any direct effect on local activity, but time will tell. When rates tick up, mortgage activity can slow down. However, with rates coming up from historic lows, there is still some running room before home activity could dampen. Rising rates typically indicate a stronger economy, so as long as homebuyers feel secure in their jobs and their prospects for increased future earnings, rates in the “5s” would not deter home purchases.

PBN: Are you concerned that another asset bubble is being created by the Federal Reserve’s continued expansionary actions? Why or why not? How would you recognize it and combat it?
GUELTZOW:
Our executive team constantly monitors treasury yields, Federal Reserve actions, and other factors that affect overall business strategy and pricing decisions. Our mortgage originators give us the day-to-day “word on the street” through realtors, developers, and real estate attorneys, so we know such what’s happening with sales prices, numbers of houses sold, etc. We always have our “finger on pulse”, so have a good sense of what’s trending at the macro level, as well as in our own backyard.

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