Is the regional manager becoming extinct in mortgage lending?

Is the regional manager becoming extinct in mortgage lending?

A lackluster origination market has pushed some mortgage lenders to shed their middle management as a way to cut costs, which raises a question among industry stakeholders: Are regional and divisional managers important to the functioning of mortgage shops? In recent months, numerous stakeholders have pointed out that as the industry weathers an extended spell of tumult, middle management staffers have a "target on their backs". While some of those cuts have come to pass, with lenders such as Newrez laying off a share of their middle management staff, stakeholders say most divisional and regional employees can be the connective tissue in a lending company. The action of letting these folks go says nothing about what value they bring to an organization, but is solely a question of economics, said Paul Hindman, an industry consultant.


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Home buyers nudge mortgage volumes higher for a third week

Mortgage application volumes inched upward, driven largely by the return of buyers in the government-loan market, according to the industry's leading trade group. The MBA's Market Composite Index crept up a seasonally adjusted 0.8% for the week ending June 21. One week earlier, the index rose by a similar 0.9%, but compared to the same seven-day period of 2023, volumes finished 1.8% lower. The recent drop in mortgage rates helped draw in aspiring buyers, according to Joel Kan, MBA vice president and deputy chief economist.?


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CFPB gives approval to new rules governing AI tools in appraisals

The Consumer Financial Protection Bureau enhanced its support through commentary to rules issued last week that will regulate the use of algorithms and complex learning models in the home appraisal process. The regulations governing automated valuation models, which are commonly backed by artificial intelligence, came as a result of a joint proposal between six federal agencies. The final proposal was approved following a public comment period. The order mandates companies using AVM tools to put safeguards into place to ensure a high level of confidence in home value estimates, protect against the manipulation of data, avoid conflicts of interest and comply with applicable nondiscrimination laws.


Voxtur seeks more transparency from dissident investors

North American mortgage technology firm Voxtur Analytics alleged Tuesday that a dissident investor group backing a new slate of board nominees hasn't provided transparency required by Canadian law. The company is calling for Nicholas Smith, RPC Ventures I Fund LP, and "unnamed associates who form the Voxtur Shareholders for 'Accountability'" to file all required information statements.? Only RPC, a Rice Park Capital Management fund, had filed one at deadline, Voxtur said. Smith is Voxtur's former chairman, and the founder, managing partner and CEO of Rice Park. He also is being nominated to Voxtur's board by VSA, which holds 19.3% of common shares and criticizes current leadership for lacking U.S. mortgage expertise.


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Michael Hermsen

Founder/Designated Broker Westlake Mortgage MLO#116363 NMLS#2127593

5 个月

It has been my experience that loan originators maximize there volume when the Owner/Leader/Regional Manager etc. is in the trenches every day originating loans themselves. There is an exponential amount of skill and nuance that can't be replicated with a leader who is not in the trenches daily. It's the little things that can be picked up upon day in and day out that can change the trajectory of careers. In my opinion, leading by example always yields the best results

I appreciate National Mortgage News giving me the opportunity to talk about this. We know that select companies have made it their mission to eliminate Divisional and Regional Leaders - they want the business, but not the leader. Many of these leaders support the mortgage lending business where the action is, and that action happens directly with those that create the business. Mortgage originators have always been aligned to the leaders they trust to be there for direction, dedication, learning and listening. There’s a bond of mutual value that isn’t easily broken. It would be impossible for me to describe all the reasons why people follow people in our business, but the fact is, they do. So, what has been happening isn’t so much about whether these divisional and regional leaders are needed by the companies that are eliminating them, but whether those that originate the business are really tied to these leaders enough to find a way to follow. That is the question... I’m not talking to those of you that spend your day working alongside your folks in the trenches, but those that operate behind a corporate curtain shielding themselves with others that do all of their dirty work.

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