MLOs Will Become More Professional in 2013
If you want someone to renovate your house, you don’t just hire a neighborhood kid with a decent set of tools. You get references from your neighbors and hire a professional who is experienced at home renovation.
So why should applying for a mortgage be any different? As we’ve written in a past Thought Leadership column, it takes a tremendous amount of time and knowledge to stay on top of the regulatory reform and licensing requirements to be a MLO these days. You need to be a fully committed, full-time MLO to do a good job. You need to be a professional.
If you’re looking to apply for a mortgage, wouldn’t you rather hire the person who has the knowledge and experience to find you the best possible loan for your situation. You need to hire a professional. And according to a recent report released by Hammerhouse, a national recruiting and strategic growth firm, the job of an MLO is heading in that direction.
“2013 will see the mortgage industry continue to evolve and the job of originators 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.”
In a recent blog post , we detailed the differences that exist between licensed MLOs and brokers to better help consumers and those in the industry identify what type of professional would best suit their needs. We recommend consumers seek formally licensed originators to ensure they have a trustworthy and highly valued professional for their mortgage needs.
Another trend that Hammerhouse has seen in the mortgage industry is younger professionals entering the workforce and looking at seasoned professionals as an example.
“While older, more experienced and proven originators are the hottest commodity in the industry; a move to recruit and develop younger talent is underway and will grow in 2013. 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,” the report said.
We saw an influx in first-time buyers in 2012 and are expected to see much of the same in 2013. These younger professionals could be beneficial in relating to targeted consumers but it is imperative that the high standards for business operation be upheld. It is necessary for these young professionals to be formally licensed – and it is up to the mortgage industry veterans to set precedence.
The evolving housing market is an encouraging movement in the right direction and according to Hammerhouse’s report, industry professionals with the right tools will be able to accommodate the market in 2013 to continue the path of recovery.
For more information on finding the right MLO for you, see our previous blog post, Finding the Right Lender.
– J.D. Crowe, Senior Vice President of Southeast Mortgage