The Mortgage Industry's New Dawn: Hiring with Caution and Strategy
September 27, 2024, 3:51 pm
Location: United States, California, Irvine
Employees: 5001-10000
Founded date: 2010
Total raised: $600M
The mortgage industry is waking up from a long slumber. After years of cuts and layoffs, lenders are starting to hire again. But this time, the landscape is different. The past three years have been a rollercoaster, and companies are approaching this new cycle with a cautious mindset.
In 2024, large mortgage lenders are adding sales and operational staff. They are preparing for a drop in interest rates and an expected increase in loan volumes. However, the industry is no longer in a boom phase. The financial situation is fragile. The hiring spree of 2020 and 2021 is a distant memory. Now, lenders are looking for a cultural fit and innovative compensation strategies. They are leveraging technology to stabilize their workforce through economic cycles.
Take loanDepot, for example. They are ramping up hiring, focusing on experienced loan officers and operational staff. The company is working on filling between 150 and 200 positions at a time. They have learned from the past. They know that hiring needs to be deliberate.
The mortgage industry has seen a significant workforce reduction over the last two years. According to SEC filings, the number of employees among eight publicly traded independent mortgage lenders shrank by 46%. loanDepot alone saw a 62% decline in its workforce. The landscape is littered with the remnants of companies that expanded too quickly.
But now, some companies are starting to hire again. Better, a digital lender, plans to bring on 40 to 50 licensed loan officers each month. They aim to hire 1,000 originators over the next 18 months. The focus is on productivity. Fewer additions to operations staff are needed for each loan officer.
The hiring landscape is changing. Companies are more cautious. They remember the chaos of the last boom. The number of active loan officers in the country has plummeted from over 181,000 in 2021 to just over 89,000 in 2023. The industry is recovering, but slowly.
Mortgage companies are also rethinking their compensation strategies. The days of hefty signing bonuses are gone. Candidates are pushing for salaries reminiscent of the boom years, but many are accepting lower packages. The pool of experienced candidates is larger than ever. Recruiters are flooded with applications.
Companies are now more strategic in their hiring. They are looking for quality over quantity. They want to build teams that can withstand economic fluctuations. The focus is on scaling technology and improving operational efficiency.
For example, UWM has been hiring steadily, even during the downturn. They bring in people with no prior mortgage experience and provide extensive training. This strategy requires careful planning. Hires are made months in advance to align with long-term needs.
In contrast, loanDepot is investing in origination capabilities. They are boosting the number of loan officers and operational staff. The company is leaning into the anticipation that the market will rebound. They believe they can handle increased volume with automation, reducing the need for a people-intensive approach.
The Mortgage Bankers Association (MBA) reports a recovery in productivity. The number of loans closed per production employee has risen. Expenses related to sales personnel have dropped. Companies are streamlining operations, cutting job positions, and eliminating layers of management.
As the hiring landscape evolves, so do compensation packages. Negotiations for operations professionals are taking longer. Candidates are willing to accept less, but they still need to make a living. The oversaturation of talent is a challenge.
In the past, companies offered large incentives to attract top producers. This approach often backfired, leading to legal disputes. Now, organizations are focusing on stability and long-term growth. They are learning from past mistakes.
For loan officers, the market is competitive. They are accepting lower compensation in exchange for stability. They want access to great products and terms. The focus is on producing at a high level, even if it means a slight trade-off in pay.
The mortgage industry is at a crossroads. Companies are hiring again, but with a new mindset. They are cautious, strategic, and focused on building sustainable teams. The lessons of the past are shaping the future.
As the market continues to evolve, the question remains: will the anticipated refinancing wave materialize? The MBA estimates that refinancings will reach $591 million in 2025, but that’s still a fraction of the volume seen in 2021.
Mortgage executives are emphasizing measured hiring. They are focused on growth and scaling technology. The landscape is changing, and companies are adapting.
In conclusion, the mortgage industry is entering a new era. Hiring is on the rise, but it’s not a return to the old ways. Companies are learning from the past, and they are approaching this cycle with caution and strategy. The future is uncertain, but the industry is poised to navigate the challenges ahead.
In 2024, large mortgage lenders are adding sales and operational staff. They are preparing for a drop in interest rates and an expected increase in loan volumes. However, the industry is no longer in a boom phase. The financial situation is fragile. The hiring spree of 2020 and 2021 is a distant memory. Now, lenders are looking for a cultural fit and innovative compensation strategies. They are leveraging technology to stabilize their workforce through economic cycles.
Take loanDepot, for example. They are ramping up hiring, focusing on experienced loan officers and operational staff. The company is working on filling between 150 and 200 positions at a time. They have learned from the past. They know that hiring needs to be deliberate.
The mortgage industry has seen a significant workforce reduction over the last two years. According to SEC filings, the number of employees among eight publicly traded independent mortgage lenders shrank by 46%. loanDepot alone saw a 62% decline in its workforce. The landscape is littered with the remnants of companies that expanded too quickly.
But now, some companies are starting to hire again. Better, a digital lender, plans to bring on 40 to 50 licensed loan officers each month. They aim to hire 1,000 originators over the next 18 months. The focus is on productivity. Fewer additions to operations staff are needed for each loan officer.
The hiring landscape is changing. Companies are more cautious. They remember the chaos of the last boom. The number of active loan officers in the country has plummeted from over 181,000 in 2021 to just over 89,000 in 2023. The industry is recovering, but slowly.
Mortgage companies are also rethinking their compensation strategies. The days of hefty signing bonuses are gone. Candidates are pushing for salaries reminiscent of the boom years, but many are accepting lower packages. The pool of experienced candidates is larger than ever. Recruiters are flooded with applications.
Companies are now more strategic in their hiring. They are looking for quality over quantity. They want to build teams that can withstand economic fluctuations. The focus is on scaling technology and improving operational efficiency.
For example, UWM has been hiring steadily, even during the downturn. They bring in people with no prior mortgage experience and provide extensive training. This strategy requires careful planning. Hires are made months in advance to align with long-term needs.
In contrast, loanDepot is investing in origination capabilities. They are boosting the number of loan officers and operational staff. The company is leaning into the anticipation that the market will rebound. They believe they can handle increased volume with automation, reducing the need for a people-intensive approach.
The Mortgage Bankers Association (MBA) reports a recovery in productivity. The number of loans closed per production employee has risen. Expenses related to sales personnel have dropped. Companies are streamlining operations, cutting job positions, and eliminating layers of management.
As the hiring landscape evolves, so do compensation packages. Negotiations for operations professionals are taking longer. Candidates are willing to accept less, but they still need to make a living. The oversaturation of talent is a challenge.
In the past, companies offered large incentives to attract top producers. This approach often backfired, leading to legal disputes. Now, organizations are focusing on stability and long-term growth. They are learning from past mistakes.
For loan officers, the market is competitive. They are accepting lower compensation in exchange for stability. They want access to great products and terms. The focus is on producing at a high level, even if it means a slight trade-off in pay.
The mortgage industry is at a crossroads. Companies are hiring again, but with a new mindset. They are cautious, strategic, and focused on building sustainable teams. The lessons of the past are shaping the future.
As the market continues to evolve, the question remains: will the anticipated refinancing wave materialize? The MBA estimates that refinancings will reach $591 million in 2025, but that’s still a fraction of the volume seen in 2021.
Mortgage executives are emphasizing measured hiring. They are focused on growth and scaling technology. The landscape is changing, and companies are adapting.
In conclusion, the mortgage industry is entering a new era. Hiring is on the rise, but it’s not a return to the old ways. Companies are learning from the past, and they are approaching this cycle with caution and strategy. The future is uncertain, but the industry is poised to navigate the challenges ahead.