The mortgage industry is evolving, including the growth of the largest market share for independent brokers the industry has seen since the financial crisis. There has been an exponential increase in the mortgage broker business, with the market share more than doubling in the last two years.
But what about the operations segment of the business supporting the growth? One of the side effects of the pandemic was the noticeable need for experienced, educated processors and underwriters and other operations team members to handle the epic swell in business driven by the historic low rate environment. Unsolicited recruiting also saw a swell, as lenders mobilized to process the volume. Not a new phenomenon for operations professionals, in fact, according to Stratmor’s Compensation Connection annual study, more than 90% of lenders pay incentives to processors. Although bank/credit union lenders are less likely to have processor incentives, more than 75% of them offer incentive plans.
The average age of mortgage professionals is currently 54-59. As these professionals move closer to retirement, an enormous gap will be left when they leave the workforce. Compounding this problem is the lack of younger people interested in pursuing a career in the mortgage industry. But with a large number of operations staff reaching retirement age by 2030, who is going to process all the loans being generated?