What human resources and mortgage turnover may look like by the end of 2021



Most mortgage lenders plan to increase or retain their current staff in 2021, even though decrease in baseline activity, found two recent reports.

According to McLagan Data & Analytics, about 54% of underwriters and processors said they would increase their headcount in 2021, and 47% of loan closing professionals would do the same. At the same time, only 2% of underwriters and 3% of converters and closers expect staff reductions in the remainder of the year, despite recent cut in forecasts for annual volume. Even taking into account the forthcoming decrease in activity, firms have been recruiting personnel to work on a large scale from the first half of the year.

“You’ve heard that 23% of buyers are in cash. [right now], but mortgage financing is required, 30 year mortgage rate will be hereMarina Walsh, vice president of industry analysis for the Mortgage Bankers Association, announced this week at the 2021 MBA in Research and Economics for One Family. “We are not following the Betamax or Palm Pilot route, the mortgage is not going anywhere. It just changes. “

The latest figures from the Bureau of Labor Statistics were reported by mortgage bankers and brokers. jobs increased to 386 800 in April from 378,300 in March and has grown every month for the past 12 years. Q1 data from business intelligence software provider LBA Ware showed annual and quarterly surges in a mortgage lease.

The turnover of loan officers fell to 21% in 2020 – the lowest level since at least 2003 – while they issued 7.6 loans per month, which is the highest average from 9.4 in 2003, according to the study. MBA and Stratmor. Periods of high volume, especially refinancing, lead to lower turnover, Walsh said, because in addition to the lack of time to find a job, LO commissions grow with their productivity.

“These loan officers were in a very good financial position,” Walsh said. “Why switch to another firm, potentially need to learn a new system for issuing loans and spend several weeks of time just setting up and acclimatizing?”

The decline in employee turnover should continue as the flexibility to work from home generated by the pandemic contributes to employee satisfaction, which is a boon to lenders’ bottom line. Less change means less adaptation and stable production.

“Turnover is cost. And so lenders need to create an environment that encourages people to stay, ”said Rob Northway, McLagan Partner and Global Head of Consumer Banking. “This is not just an additional payment, this is the creation a culture that is truly attractive to the employee base “.


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