Loan officers (LOs) are expected to be spending longer working hours according to Dave Krichmar, a banker at Legend Lending Corporation, whose 2022 origination volume is more than $100 million which consisted of 77% purchase loans. Their goal is to find referral partners, close loans faster than the others, and diversify their mortgage product offerings to compete with a shrinking industry.

There are likely to be further layoffs in the industry as a result of low origination volume, which is why LOs, including Krichmar, plan to focus on strengthening their own niches.

HousingWire’s lead analyst Logan Mohtashami mentioned in a recent column that mortgage demand has picked up due to rates falling to 6% and a massive backlog of homes under construction. In an industry plagued by a lack of inventory recently, it’s good news.

The industry will not see pandemic banner years again – there is no sugarcoating it. There seems little chance of another pandemic creating favorable housing market conditions in the foreseeable future. Especially for first-time homebuyers, it will be difficult to afford a home due to volatile rates, the threat of a prolonged recession, and affordability restrictions.

Hence, LOs will be fighting for the same share of the mortgage pie as in 2022, but with products that are less rate-sensitive. To succeed in the purchase market in the coming year, they will need to use social media, connect with real estate agents, or even knock on people’s doors again.

The LOs will push for temporary rate buydowns to lower mortgage rates during the initial period, as well as diversified mortgage products, such as loans for renovations or constructions.

LO and branch manager at Mann Mortgage – Michael Barnes said that no person will want to sell their house that they have paid a great amount on with a low-interest rate. He noted further that what’s going to set most LOs apart are construction loans or quality renovation products.