Originators Cite Regulatory Burden As Biggest Industry Challenge

Posted by Orb Staff on April 24, 2013 No Comments
Categories : Residential Mortgage

13713_concern Originators Cite Regulatory Burden As Biggest Industry Challenge An increased burden of regulations and poor internal operations are among the concerns that challenge mortgage bankers, according to the 3rd Annual Survey of Originator Opinions, conducted by Mission Viejo, Calif.-based Hammerhouse LLC.

In a national survey of more than 350 active mortgage loan originators, 50% of respondents said the greatest challenge facing originators was the next phase of regulation that was being implemented across the industry.

Eighteen percent of respondents stated the rising interest rate was their greatest concern, while 17% cited a "personal or company transition to purchase dominated market" and 15% said the "big banks' ability to attack the purchase market with thin margins."

When queried on the main reason they would leave their existing job, 32% of the mortgage bankers cited "poor operations" and a "lack of human capital for fulfillment." Nineteen percent cited inadequate compensation as a driving force to switch jobs, while 18% cited leadership issues and 12% cited corporate culture.

The hunt for mortgage banking talent appears to be in motion: 32% of those polled said they've been approached by between five to 10 organizations or recruiters for potential new jobs, while 30% said two to four organizations or recruiters put feelers out.

Still, there was optimism to be found. When asked to predict origination levels for this year, 44% forecast an increase from 2012 levels, while 28% expected levels to remain unchanged and 27% expected to see a decline.

"The best originators in 2013 are a very experienced group of professionals that are in high demand by lenders, but who demand outstanding operations, technology and leadership from their employers," says Drew Waterhouse, managing director of Hammerhouse.

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