Introduction
In this compelling episode of Behind the Lender, we sit down with Frank Giacomini, National Sales Manager at RFA Alternative, who brings over 25 years of mortgage industry experience to the table. Frank's journey from an accidental banking career to becoming a leader in alternative lending offers valuable insights for brokers navigating today's complex mortgage landscape.
From his early days at ING Direct (starting on September 11, 2001) to his recent move to RFA Alternative, Frank shares candid perspectives on what it takes to succeed in sales, the evolution of alternative lending, and why the broker channel continues to thrive despite regulatory challenges.
From Accidental Banker to Mortgage Expert
Frank's entry into banking was far from planned. What started as a part-time job to help his parents with their mortgage situation evolved into a passionate 25-year career. His breakthrough moment came in 2003 when ING Direct acquired First Marathon, introducing him to the broker channel that would define his professional path.
"When I got bitten by the mortgage bug, that was it," Frank explains. His journey took him through various roles - from analyst to underwriter to credit manager - before discovering his true calling as a BDM. What sets Frank apart is his philosophy: "I never sell a thing. I just coach my people. I really try and find the best solution."
The Foundation of Trust
Frank's approach to broker relationships centers on being the "first call" - even when his lender isn't the right fit. This strategy has served him well throughout his career, with brokers calling him for advice regardless of which lender he represented. "Study what your competition does," he advises. "Be the first call even if it's directing them elsewhere."
RFA Alternative's Market Position and Mission
RFA Alternative operates with a clear mission: become the top choice for alternative clients by making brokers remarkable in front of their customers. Frank emphasizes a dual focus - enhancing the broker experience while keeping the end borrower at the center of every decision.
"If I can help you guys be remarkable in front of your clients, your clients are going to keep coming back," Frank explains. "And if you can build that consistent loyal client, you're going to be coming back to me for sure."
The Game-Changing Penalty Structure
One of RFA Alternative's most significant differentiators is its penalty structure - arguably the most flexible in the alternative market. With penalties of just 2% in the first year and 1% thereafter, RFA offers substantially more flexibility than competitors who often use Interest Rate Differential (IRD) calculations.
This flexibility addresses a critical market need. Frank references recent survey data showing that 67% of clients want the flexibility to move and would pay for that option. "Here we are giving it to you for free," he notes, highlighting a key selling point for brokers.
Understanding the Alternative Lending Landscape
Frank provides valuable insights into current market trends shaping alternative lending. The implementation of Loan-to-Income (LTI) ratios by OSFI in 2025 initially challenged lenders but has ultimately led to more refined underwriting approaches.
Borrower Behavior Evolution
Today's alternative lending clients are markedly different from those of a decade ago. Average credit scores have risen significantly - now averaging around 680 for RFA's portfolio, compared to the sub-600 scores common in earlier years. Frank attributes this improvement to increased consumer education about credit importance.
Self-employed borrowers, in particular, are viewing alternative lenders as "forever homes" rather than temporary solutions. This shift reflects the growing sophistication of business-for-self (BFS) clients who understand the tax advantages of write-offs versus higher mortgage payments.
The Mathematics of BFS Lending
Frank provides a compelling mathematical argument for BFS clients choosing alternative lending. "If you're paying 50% taxes, that's a $25,000 hit on taxes versus 1% on your mortgage, which ends up being maybe $5,000 or $6,000," he explains. This simple calculation helps brokers demonstrate value to self-employed clients.
Behind the Scenes: RFA's Deal Processing
Understanding how deals flow through RFA's system helps brokers set appropriate expectations. Applications submitted before 3 PM are typically handled the same day, with everything else queued for the next business day. The process involves both underwriters and mortgage fulfillment officers, with escalation procedures for complex situations.
Frank emphasizes a crucial mindset shift for brokers: "If we're coming back with other conditions, it means we want to do this deal. We have to be compliant. We don't have that choice. We are regulated by OSFI, and if we're not compliant, we get our wrist slapped."
Proactive Communication Strategy
Rather than simply declining challenging applications, RFA's team proactively reaches out to brokers to explore alternatives. This approach reflects Frank's philosophy that underwriters should look for reasons to approve, not decline, applications.
Service Standards and Success Metrics
RFA maintains clear service standards: 24-48 hours for application approval and similar timeframes for documentation review. These standards extend to 72 hours during busy month-end periods. Success is measured not just by volume growth but by efficiency metrics, including the crucial application-to-funding ratio.
"The amount of applications we have to look at to fund the deals - that's where I was going with efficiency," Frank explains. This metric reflects both the quality of submissions and the lender's ability to clearly communicate their ideal client profile.
Future Outlook and Industry Trends
Looking ahead, Frank identifies several key trends RFA is monitoring closely. Property values remain the primary focus for alternative lenders, given their client base often includes those with non-traditional income or credit challenges.
Product development priorities include bridge financing and potentially longer-term options for BFS clients. "People do not move the way we used to 20 years ago. They move on the same day, on the same weekend. So a bridge product is very important," Frank notes.
The Broker Channel's Bright Future
Despite recurring predictions about the broker channel's demise, Frank remains optimistic. "OSFI has done a huge favor for the broker channel," he argues. "The more complicated the deals become, more experienced people are the brokers, and the expertise lies on the broker channel for the most part."
Key Takeaways
- Penalty flexibility matters: RFA's 2%/1% penalty structure provides significant value compared to IRD-based competitors
- BFS clients are evolving: Today's self-employed borrowers view alternative lenders as long-term solutions, not temporary fixes
- Additional conditions signal intent to approve: When lenders request more documentation, they're trying to close the deal, not decline it
- Education drives success: Brokers who understand the mathematics of alternative lending can better serve their clients
- The broker channel's expertise is increasingly valuable: Regulatory complexity favors experienced mortgage professionals
- Relationship building remains paramount: Being the "first call" for brokers, even for non-fitting deals, builds long-term trust
Why You Should Listen
Frank Giacomini's 25-year journey offers rare insights into the evolution of mortgage lending and the alternative space specifically. His practical advice on building broker relationships, understanding client needs, and navigating regulatory challenges provides actionable strategies for mortgage professionals at any career stage.
Whether you're new to alternative lending or looking to deepen your expertise, Frank's perspectives on market trends, client behavior, and the future of the broker channel offer valuable guidance for building a successful mortgage practice.
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