“By recruiting top-performing loan originators to either join or return to the mortgage broker world, the channel will benefit from an increase in numbersbased productivity, as well as prestige.”
Flexibility and Financial Promise Lead Experienced LOs Back to Brokerage Firms By Mat Ishbia
OCTOBER 2015 n National Mortgage Professional Magazine n
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The playing field within the mortgage industry continues to become increasingly level across the board, retail and wholesale lenders alike, as innovative technology and a steady revival of public image continue to serve as great equalizers for companies of all sizes. The growing appeal of mortgage brokers is becoming more clearly recog-
nized by more than homebuyers—but by loan originators as well. A rising number of loan originators are flocking to broker shops, either from large banks or mega retail lenders, as the career opportunities in the wholesale segment paint a clearer picture of financial promise, professional freedom and sustained career
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success. The higher training and licensing standards that originators are held to in the broker channel, as well as the ability to easily adapt to changes, provide them with greater control over their business. It’s a demanding, yet lucrative profession for smart and savvy self-starters with strong people skills. And the proof is in the numbers. According to numbers produced by the NAMB—The Association of Mortgage Professionals, membership was as high as 23,000 in 2006 before plummeting to 8,500 in 2010 following the housing market crash. As the broker channel has continued to pick up steam and positive press over the last few years, membership has already climbed back to over 16,000 brokers, based on Nationwide Mortgage Licensing System numbers. This trend cannot be understated. As is the case with any industry looking to expand its market share, talent attraction plays a key role in making that happen. By recruiting top-performing loan originators to either join or return to the mortgage broker world, the channel will benefit from an increase in numbers-based productivity, as well as prestige. The mortgage industry is a magnet for knowledgeable, driven individuals. It satisfies savvy, business-minded professionals who excel at building relationships and producing positive bottom-line results. It also builds upon that innate nature that many people have to compete and be the best. It literally pits you against other professionals; your company against the rivals down the road. Like in sports, in terms of gaining a prospective client’s business, there is always a clear winner and loser. Along these lines, for professionals who are fueled to compete and be the best, it is only logical that loan originators would want to put themselves in the best possible position to succeed. That position for maximum achievement lies in the mortgage broker channel, as it offers the resources needed to land the most clients. It is the responsibility of loan originators to find new clients, counsel bor-
rowers on how to choose the best mortgage, and fill out loan applications. The job is tied to providing high-level client service and helping borrowers successfully purchase a home as efficiently and hassle-free as possible. The freedom and range of products available in the wholesalebroker channel enhance the likelihood of successful transactions—and the reasons are incredibly simple. While large banks and mega retail entities handcuff their loan originators to one specific product, rate or turn-times, brokers have access to hundreds of different options throughout the country. The loan process is a very personalized experience for home buyers, as no two borrowers are exactly alike—in terms of credit score, savings or personal preferences. One borrower might need to get an accelerated closing because of a job relocation, while another may be more inclined to move at a slower pace in order to get the lowest possible interest rate. Considering the variety of needs from one client to another, it only makes sense for a loan originator to seek an opportunity where they are best able to accommodate those needs. Large banks and mega retail lending institutions are only able to offer the loan products that they have in-house, and pricing is often higher because of the overhead costs associated with their marketing and advertising initiatives. Loan originators in the broker channel have the flexibility and diversity to strategically match borrowers with specific lenders from all 50 states—that align with their specific situation. They can better specialize in mortgages for clients with complex financial situations, such as selfemployed individuals, second-home buyers and anyone dealing with tricky life matters. A favorable perception is another element that is rapidly shifting back in support of mortgage brokers over bankers. While the public opinion about brokers may have been a bit jaded following the housing crash,