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Sounds like a name for a bad soap opera or a reality TV show. But, once again this year, the trend continued.
Non-Bank mortgage lenders shed employees in December, January, and February only to find the need to find new employees in March. Like the annual migration of the Wildebeests, it happens every year.
Why haven’t lenders figured this out? With all the advances in technology, it would seem that they could handle housing market movements, which affect originations, with less volatility in their hiring processes.
But, they don’t! Every year, and at periods throughout the year, we see employees come and employees go. All based on loan volume.
I guess it’s one way to control costs but what about the expense of hiring and training, and the effects on customer service, employee morale, and the country’s unemployment rate?
To minimize the disruption in operations and service resulting from this employment roller coaster, lenders need to look for technology that can help tie variable income to variable expense.
Minimize dependency on brick and mortar office space by utilizing remote employees and contractors that are compensated on a per transaction basis. Tie as many employees as possible to a commissioned based compensation plan motivating each to work collectively toward closing more loans, more efficiently.
The fewer number of people closing more loans will benefit everyone. With the right technology, a lender can double an employee’s output eliminating the need to hire more when things get busy. Employees then share in the good times, as well as the downturns, and become much more vested in the overall success of the company.
Look for ways to utilize the new technology to help get you off the employment roller coaster. Don’t make the mistake of sacrificing quality and experience when things get tight. These are qualities that may be tough to recover when times get better.
Take a close look at your QC expenses. These can be easily tied to productivity, either via outsourcing, or the use of a better QC platform. LoanLogics offers both.
You may think you can’t afford quality and compliance but you don’t want to find out the cost if you don’t have it.
A roller coaster ride may be fun. But, that’s not the best way to manage your personnel or your business.
