The Job Market in Mortgage Industry
Today we all know that hiring in financial sector is nearly crawling. A quick examination of any job board will throw light on this statement. However there is one exception to the above mentioned statement, the mortgage industry. Big names like Citigroup, Wells Fargo and Fifth Third Bank are adding resources to their head count. You can get professional resume writing services help here.
The recent reports mention that Citigroup has hired thousands of people for its mortgage business. This growth is expected to escalate in coming months. The graph will escalate into a normalized market once the interest rates reconcile to precession levels. The director of Public Affairs at Citigroup mentioned this fact. Citigroup has also opened many retail branches at various locations in New York and has hired almost 130 home loan specialists. These figures are based out of 2012 year statistics.
Not only this Wells Fargo has doubled the strength of its team members who were looking after Home Affordable Refinance Program. This section helps the homeowners who are dwindling with real estate prices. This team helps to refinance the homes of affected party. To increase the working hands under HARP section of Wells Fargo more head counts are needed in this current year. It is rightly said, that when rates drop more team members are required.
The Fifth Third mortgage Company is also adding new staff members in the loan processing and sales region from last financial year. The experienced mortgage loan originators, processors and underwriters are required on timely basis.
There is an internet based mortgage house called Quicken Loans which has hired on an average 120 mortgage brokers in past few months.
If you closely look the recent splurge in mortgage hiring is due to the direct impact of low interest rates. The other reasons are more home purchases and other after effects due to 2008 mortgage crisis.
The refinances for responsible homeowners and affluent need exhaustive credit checks, high level of appraisals and extensive paperwork. This forces the banks to hire more team members.
No doubt the new regulations have added jobs in the job market however there are also some consequences of this change. This has affected the industry and mortgage workers on a whole.
The mortgage employees have a huge responsibility and extensive work pressure. They for for longer hours and have huge paper work. With strict regulations come the add on pressure to loan originators and underwriters. Moreover they are monitored internally and also by the federal and state regulators.
The working standards are made so stringent by the operation team that if you make even small mistakes it flashes on your work records. It is surprizing that mortgage employees work for almost 60 to 80 hours in a week to deliver efficiency.
The work processes are very transparent and lay emphasis on compliance. To work along with new regulations, it is time consuming for underwriters. Every aspect of loan has to be manually checked and has to be accurate. This is strenuous and exhaustive.
If you look deep into the aspect of mortgage jobs, people are quitting their jobs. There is high level of absenteeism and attrition in this industry.
People say that there is lot of hiring going on, but people do not look deep into the reasons behind hiring. The hiring is the after effect of huge attrition rate in this sector. Organizations have to hire, as they have to compensate for the turnover rate.
According to the facts given by Mortgage bankers Association, the mortgage industry did hire 10,000 employees in between May and June. However, the industry could just add 1300 jobs due to the after effects of job losses in January and April. These figures exclude the 8000 jobs which were added in month of June. Therefore, if you compare the head counts the figures are relatively unchanged.
According to the detail study of June report it was mentioned that home sales has continue to recover therefore mortgage hiring will also improve. People who are looking after mortgages are quiet low in demand. A senior economist Mike Montgomery mentioned that if you step into the boots of a mortgage broker it is quite a safe game to pick up hiring after a very long and lousy period.
The big names Wells Fargo, Fifth Third, Citigroup and Quicken Loans did not say anything on the higher percentage of 2012. They did not utter anything about the backfills. But they did mentioned about the net gains in the first half of the year 2012.
The mortgage crash has also affected the fresh talent of this industry. The after effects are long work hours for mortgage workers and talent poaching. It was seen that in year 2008 many new hires lost their jobs as the market conditions were very volatile. The worst affected lot was the fresher from colleges who were keen in getting into mortgage industry.
Hesitant to Train
There is hesitance in training in the mortgage industry. The reason is the uncertainty, which was difficult to get fresh talent due to complexity in job. Due to excessive talent poaching the companies are hesitant to train the inexperienced fresher. Nobody wants to invest in the resources, which are spent on training the young lot. With uncertainty and higher risk of turnover rate there is a huge complexity in the minds of human resource department.
Keeping this in mind, Quicken Loans initiated an internship program whose motive was to encourage the interns to join back the company. this has moreover helped the company in getting the fresh talent to design many programs.
Interest Rate Uncertainty
If there is hike in the interest rate then the requirement for additional hires would slow down. However if you look into the positive aspect this is a good news for talented professionals especially loan originators.
The mortgage houses will require newer and better sales person with the rise in interest rates and cooling off of refinancing market.
The new loans market is under great scrutiny unlike the refinance market. This area of job requires smarter and proactive sales people. These people can play with higher margins in new businesses. The companies will be more interested in training the less experienced but more talented people.
The figures mention that the average home prices in June escalated for the first time ever since 2010. This shows that market is moving in a right direction. Now the mortgage industry should look for right kind of people to make use of right time.