Some lenders are trimming staff due to excess capacity as the market turns and loan volumes decline from last year’s industry historic highs. However, lenders do not want to lose productive mortgage loan originators (MLOs).

Even as markets retract, MLOs with the skills and experiences to keep business coming in are highly sought after. A company with great producers on staff does not want to lose them, but some lenders have problems retaining them.

It is possible for loan officers to consider moving to another company for a number of reasons. In these challenging times, understanding them will help you retain your best MLOs. In this article, we will discuss the factors why MLOs may decide to go to a new company.

Affordability of Home Loans

Homebuyers today face a real challenge when it comes to affordability. Interest rates remain relatively high despite home prices softening. For those lenders with only one origination channel or who earn revenue through a single source, raising rates and fees is a necessity in order to gain profit.

New Products

In some ways, loan programs across lenders are similar, particularly those that only deal with government-sponsored enterprises. It is essential to offer niche products if you want to attract homebuyers, home sellers, and new home builders.

It is best for lenders to offer new products in anticipation of (or at least within a short period of time after) market changes in order to attract the best MLOs.

Lead to Close Speed

The ability to never miss a closing date is the life or death of MLOs in purchase-money markets. Agents are advising their clients to be aggressive and close quickly while the real estate market is still very hot in many areas. As a result, lenders without streamlined origination processes face increased pressure.

Technology

Technology is a powerful tool, especially for MLOs who want to grow their business. They’ll look elsewhere for employment if they see a lender using an outdated LOS and few other tools.

Marketing Support

A lender that understands the importance of marketing technology in today’s market will attract MLOs. Those lenders who offer their loan officers a full range of marketing tools and services, including staff who can support the development, management, and enhancement of their online reputation, are the first to attract new MLOs.