Bidding wars for mortgage LOs heat up again

Mortgage loan officers are now at the center of fierce bidding wars as companies strive to take advantage of a potential refinance boom on the horizon, according to industry insiders speaking to HousingWire. Candice McNaught, the senior vice president at Planet Home Lending, is tasked with expanding the company’s retail platform by hiring 100 loan officers by the end of the year, a challenge intensified by the highly competitive hiring landscape.

With the expected refinance wave not yet materializing, companies are facing pressure to offer attractive compensation packages to entice top talent, leading to bidding wars and industry experts highlighting the difficulty this poses for some firms. The shrinking pool of mortgage loan officers further complicates the situation, as only a fraction of LOs in the U.S. are handling significant transaction volumes, making them highly sought after by lenders.

Amidst this hiring frenzy, loan officers are contemplating whether to switch companies or stay put, with market conditions playing a significant role in their decision-making process. The search for talent has become increasingly competitive, with some lenders offering up to 70 basis points to secure high-producing loan officers, mirroring the challenges faced by McNaught in her recruitment efforts.

While larger lenders are expanding their workforces, smaller players with annual production under $500 million are feeling the constraints, needing to navigate the uncertain market conditions. The industry remains hopeful for a surge in refinance activity, but the timing and magnitude of this anticipated wave remain uncertain, prompting companies to strategize and position themselves for potential growth.

As the mortgage industry navigates these challenges, companies are exploring different approaches to recruitment and growth, with a focus on adaptability and survival in a rapidly changing market landscape.