Booms can make you careless. Busts can teach you how you never want to run a business again.
Hazem and Mack sit down with Wade Comeaux, CEO of Catalyst Funding, a Houston-based lender focused on real estate investors, to talk about what he learned from the pre‑crisis mortgage world and why he built his company to behave differently. Wade shares how government pressure, exotic loan products, and easy money contributed to the last meltdown, why Catalyst focuses on fix‑to‑rent, DSCR loans, and long‑term partnerships, and how he thinks about leadership, culture, and concentration risk when the cycle inevitably turns.

Learn more about Catalyst Funding (https://catalystfdg.com/).

To learn more about Integrity Bank, go to itx.bank.

Subscribe to Banking on Integrity on Apple Podcasts, Spotify, or wherever you get your podcasts!

Key Takeaways

1. Wade’s early years in national mortgage lending showed him how quickly good intentions and flexible products can morph into bad credit. He describes the pre‑crisis environment of stated‑income loans, high‑LTV deals, and pressure to lend into certain zip codes, and how that experience shaped his approach.

2. Catalyst Funding was founded in 2014 to be more countercyclical and investor‑focused. Instead of chasing refi waves, the company centers its business on fix‑to‑rent, fix‑and‑flip, and long‑term DSCR loans that help real estate investors build wealth over time.

3. Loan size is only one piece of risk; the borrower is the other. Wade explains why Catalyst has done loans up to the low‑million‑dollar range, but how experience, track record, and overall exposure to a single client matter as much as the dollar amount itself.

4. Banks like Integrity are key capital partners, and they care deeply about concentration. Wade walks through how he talks to banks about larger loans, what they look for in “compensating factors,” and why a strong narrative and data‑driven underwriting can unlock exceptions when it makes sense.

5. Leadership through cycles is about culture, not just spreadsheets. The conversation closes with Wade’s thoughts on avoiding whipsaw hiring and layoffs, building a team that understands risk, and remembering that you can borrow money and ideas—but conviction about your model has to be earned the hard way.

Timestamped Overview

01:10 Wade traces his career through large mortgage lenders and describes the pre‑crisis boom in creative home loan products
02:30 How government policy and pressure around certain zip codes and income levels helped fuel looser credit decisions
03:50 Stated‑income, high‑leverage loans, and the mindset that home prices could only go up
05:30 Why Wade chose to launch Catalyst Funding in 2014 after living through layoffs and volatility in the mortgage business
07:25 Grassroots beginnings: finding his first clients, doing early hard money deals, and blending investor and lender experience
09:00 What Catalyst funds today: fix‑to‑rent, fix‑and‑flip, DSCR loans, and conventional refinances for real estate investors
11:00 Minimum fees, typical loan sizes, and why Catalyst’s largest loans have been around the low‑million‑dollar range
12:30 How banks that fund Catalyst think about single‑borrower and single‑loan concentration, and when they’ll stretch
14:00 The importance of borrower experience, underwriting, and story when asking capital partners to take more risk
16:30 Wade’s view on leading through interest rate moves and cycles, from hiring decisions to communicating with investors
19:00 Why he believes culture and conviction matter more than chasing the hottest product of the moment
21:00 Closing thoughts from Hazem and Mack on partnering with lenders like Catalyst and helping investors build responsibly

Booms can make you careless.&nbsp;Busts can teach you how you never want to run a business again. Hazem and Mack sit down with Wade Comeaux, CEO of Catalyst Funding, a Houston-based lender focused on real estate investors, to talk about what he learned from the pre‑crisis mortgage world and why he built his company to behave differently. Wade shares how government pressure, exotic loan products, and easy money contributed to the last meltdown, why Catalyst focuses on fix‑to‑rent, DSCR loans, and long‑term partnerships, and how he thinks about leadership, culture, and concentration risk when the cycle inevitably turns.
Learn more about Catalyst Funding (<a href="https://catalystfdg.com/">https://catalystfdg.com/</a>).
To learn more about Integrity Bank, go to <a href="https://www.itx.bank/">itx.bank</a>.
Subscribe to Banking on Integrity on <a href="https://podcasts.apple.com/us/podcast/banking-on-integrity/id1809270239">Apple Podcasts</a>, <a href="https://open.spotify.com/show/6hUwt34fVZynVGwtnt2aos">Spotify</a>, or wherever you get <a href="https://omny.fm/shows/banking-on-integrity/playlists/podcast">your podcasts</a>!
Key Takeaways
1. Wade&rsquo;s early years in national mortgage lending showed him how quickly good intentions and flexible products can morph into bad credit. He describes the pre‑crisis environment of stated‑income loans, high‑LTV deals, and pressure to lend into certain zip codes, and how that experience shaped his approach.
2. Catalyst Funding was founded in 2014 to be more countercyclical and investor‑focused. Instead of chasing refi waves, the company centers its business on fix‑to‑rent, fix‑and‑flip, and long‑term DSCR loans that help real estate investors build wealth over time.
3. Loan size is only one piece of risk; the borrower is the other. Wade explains why Catalyst has done loans up to the low‑million‑dollar range, but how experience, track record, and overall exposure to a single client matter as much as the dollar amount itself.
4. Banks like Integrity are key capital partners, and they care deeply about concentration. Wade walks through how he talks to banks about larger loans, what they look for in &ldquo;compensating factors,&rdquo; and why a strong narrative and data‑driven underwriting can unlock exceptions when it makes sense.
5. Leadership through cycles is about culture, not just spreadsheets. The conversation closes with Wade&rsquo;s thoughts on avoiding whipsaw hiring and layoffs, building a team that understands risk, and remembering that you can borrow money and ideas&mdash;but conviction about your model has to be earned the hard way.
Timestamped Overview
01:10 Wade traces his career through large mortgage lenders and describes the pre‑crisis boom in creative home loan products 02:30 How government policy and pressure around certain zip codes and income levels helped fuel looser credit decisions 03:50 Stated‑income, high‑leverage loans, and the mindset that home prices could only go up 05:30 Why Wade chose to launch Catalyst Funding in 2014 after living through layoffs and volatility in the mortgage business 07:25 Grassroots beginnings: finding his first clients, doing early hard money deals, and blending investor and lender experience 09:00 What Catalyst funds today: fix‑to‑rent, fix‑and‑flip, DSCR loans, and conventional refinances for real estate investors 11:00 Minimum fees, typical loan sizes, and why Catalyst&rsquo;s largest loans have been around the low‑million‑dollar range 12:30 How banks that fund Catalyst think about single‑borrower and single‑loan concentration, and when they&rsquo;ll stretch 14:00 The importance of borrower experience, underwriting, and story when asking capital partners to take more risk 16:30 Wade&rsquo;s view on leading through interest rate moves and cycles, from hiring decisions to communicating with investors 19:00 Why he believes culture and conviction matter more than chasing the hottest product of the moment 21:00 Closing thoughts from Hazem and Mack on partnering with lenders like Catalyst and helping investors build responsibly

Explore the heart of Houston's business community with Banking on Integrity, brought to you by Integrity Bank. Join founders Hazem Ahmad and Mack Neff as they interview local entrepreneurs, sharing their journeys of success, overcoming challenges, and driving Houston forward.

Explore the heart of Houston's business community with Banking on Integrity, brought to you by Integrity Bank. Join founders Hazem Ahmad and Mack Neff as they interview local entrepreneurs, sharing their journeys of success, overcoming challenges, and driving Houston forward.

Banking on Integrity

Banking on Integrity is your inside look at Houston's thriving entrepreneurial scene. Hosted by Integrity Bank's Hazem Ahmad and Mack Neff, this podcast features inspiring interviews with local business owners, offering valuable insights and lessons for anyone looking to succeed in business.

Banking on Integrity is your inside look at Houston's thriving entrepreneurial scene. Hosted by Integrity Bank's Hazem Ahmad and Mack Neff, this podcast features inspiring interviews with local business owners, offering valuable insights and lessons for anyone looking to succeed in business.