An expanding national recruiting and strategic growth firm for the financial service industry; Hammerhouse LLC has released an annual outlook on the key hiring trends that will have an effect on the mortgage industry, 2013. According to the aforementioned firm, the mortgage industry will evolve gradually and the job of the originators will gradually become more professional. The mortgage hiring industry will continue to stabilize and all those mortgage lending companies that are well-structured with strong leaders, balanced production, geographically oriented and financially strong. 2013 will certain be the year to outshine among the peers. Check out the mortgage industry hiring trends in the year 2013.
- Combination of firms will accelerate: As there will be less volume, there will be the need for less and more efficient resources for generating production. In 2013, there will be consolidation among independent mortgage producers. Some might simply find it too tough to maintain their independence in the new market environment. Those mortgage lenders who were totally dependent on mortgage refinancing can either disappear or merge. Apart from the growth among the independent retail mortgage bankers, there will also be a growth among the brokerage ranks. The flexibility, financial benefits and the freedom that is available for the top producers will continue to move away from the big bank operations.
- A brand new market environment will come up: Although the advent of higher mortgage rates has been predicted for a long time now, yet there is a corresponding move away from the refinance transaction to a purchase transaction orientation and 2013 is certainly going to be the year for such things to occur. The Federal Reserve has resolved to keep the fund rates low into 2015 or until the economic target has been reached. Based on the market conditions, the mortgage rates will also rise meaningfully by the end of 2013 and this may keep an upward trend throughout 2013. Even if the rates don’t rise, the pool of all those willing and able to refinance will gradually become smaller. Not only will the source of business change but the business strategy that is necessary for the development and attraction of new businesses will also change.
- The high valued originators will be rewarded: The originators with transferable, referral-based and balanced books of business will certainly be in high demand. There’s no better type of mortgage company than one who has continuously produced at high levels, both refinance and purchase business that has been sourced from the past customers. All the originators meeting this standard will find that they have enough leverage with the employers. One related trend that will persistently carry on in 2013 is that the high valued originators will find the employers willing and even eager to provide all the added-value benefits.
- The industry will seek renaissance: While the more experienced and older originators are the hottest commodity within the mortgage hiring industry, a move to recruit and develop some new talent is underway and will gradually grow in 2013. One of the effects of the housing sector collapse was the loss of mid-career and younger originators. Now as the market moves towards younger originators to offer the hustle needed to succeed with the Realtors, the first time home-buyers are readily apparent.
- Regulations and rules will become more organized: The enforcement actions that are based on previously new rules will help to normalize operations as the expectations become clearly known. But there are many new regulations that are still to be implemented and written. This might take time and can also be a difficult process. One likely outcome will be more consistency between the non-depositories and the depositories like the bank originators going through the state licensing process.
The related emerging trend is actually the beginning of “transition planning” for all the older originators hoping to chart a path to their retirement. Look for the lenders to support the natural transition of more successful originators.