The Future of the Loan Originator

0 0

I’ve heard it said over and over that the mortgage banking business may be in jeopardy as the average age of a loan originator is somewhere north of 55. The industry just ain’t attracting any new talent these days.

This was one of the main topics of discussion that I participated in at a recent town hall meeting at the closing of the 34^th Annual Conference of Mortgage Bankers held in Atlantic City last week.

The conversation touched on what needs to be done to attract new people; especially Millennials, into the business and what effects technology may have on the future of lending and LO’s.

There was no shortage of opinions from the industry experts on the panel and from the many in attendance. We all agreed that training is the key.

Having been in this business for over 45 years, I’ve seen many changes take place, not the least being QM, ATR, and TRID just recently. Through it all and in the face of these challenges, the industry has always found a way to survive and in most cases thrive.

Why? Because of the people!

LO’s may be getting a little long in the tooth, but that just means they’re experienced and there is no substitute for that experience. The introduction of new technology will provide these and the next generation of LO’s with new and better tools to do their jobs. These tools will make them much more efficient.

Efficiency and experience are an unbeatable combination. The mortgage industry is changing. New products, new customers, new technology, and new loan originators.

It will continue to service the needs of home buyers and owners as long as those needs exist. After all, that’s what we do.

Take a long hard look at technology; it will surely benefit your bottom line in the long run. But, don’t overlook the people on the front line. All the technology in the world won’t do the job without the right people.

BTW, at the conference, I noticed a whole bunch of attendees well below the age of 55. It looks as though some new talent must be coming into the industry after all. And from what I saw, heard, and experienced most of this new talent is pretty darn good.

I believe the Loan Originator will be around for quite a while. Just be sure your LO’s are well trained, armed with the right products, have a good support team, and the technology needed to compete. They’ll do the rest.

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.