Is the regional manager becoming extinct in mortgage lending?
National Mortgage News
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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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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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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.