Mortgage Industry to Contract in 2013
Changes in mortgage origination, including a changeover from refinancing transactions to purchases transactions and industry consolidation, will reduce the number of jobs but increase the opportunities for younger workers, according to Hammerhouse , a national recruiting firm for financial services.
“2013 will see the mortgage industry continue to evolve and the job of originators will continue to become more professional,” stated Drew Waterhouse, Managing Director of Hammerhouse. “The industry will continue to stabilize and the companies that are properly structured, with strong leaders, quality-focused, balanced production, technologically advanced, geographically oriented and financially strong, will find 2013 to be the year they excel versus their peers.”
The advent of higher rates along with the move away from a refinance-transaction orientation to a purchase-transaction orientation, 2013 will see the pool of refinancing jobs will continue to grow smaller. There will be fewer people and companies needed in such an environment, the firm predicted.
With less volume comes the need for less and more efficient resources to generate production. There will be a consolidation among independent mortgage producers. Some will simply find it too difficult to maintain their independence in the new market environment. Those that were too dependent on refinances will either merge or disappear, Hammerhouse said today.
Originators with transferrable, balanced, referral-based books of business will be in high demand and will find that they have significant leverage with employers. Younger workers will be in demand. One of the consequences of the housing sector collapse was a loss of younger and mid-career originators. Now, with the market preparing to move to a purchase-orientation, the need for younger originators to provide the hustle needed to succeed with Realtors® and to target younger, first-time buyers is readily apparent.
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