Loan Officers In For A Rude Awakening: Layoffs, Acquisitions, Mergers
Summary
Mortgage professionals from every reach of the industry have profited hugely from the housing boom over the past few years, and in the meantime, some companies have bolstered their internal technology and automation to improve productivity. Real estate giant, Redfin, announced in early January that it will pay an estimated $135 million cash to purchase Bay Equity Home Loans, according to multiple sources, a lender that is active in 42 states and employs 1,200 people. Sources who spoke to Housingwire said that concern over layoffs are rising at Fairway Independent Mortgage, but also said loan officers can be more confident working with a more stable traditional shop rather than a fintech company. Data from Mortgage Bankers Association (MBA) and Peers Strathmore Group show that loan officer turnover rate is highly vulnerable and/or dependent on market conditions. The MBA speculates that this disparity is due to differing management approaches, company culture, licensing requirements, incentive compensation, as well as the availability of product offerings and pricing parameters.