Lenders need to offer tighter fulfillment, training and leadership to
hold onto high-producing LOs
NASHVILLE, Tenn.--(BUSINESS WIRE)--
Lenders One announces the results of a new national survey on loan
officer retention conducted by Majestic Consulting. According to the
survey results, productive loan officers are willing to leave higher
paying positions to move to a company where management has a firm grasp
on fulfillment and business development. Findings from the survey were
unveiled at the Lenders One® 2014 Summer Member Conference in
Nashville today. More than 450 independent mortgage bankers, investors
and vendors are attending the conference.
"The assumption that loan officers always leave for a better
compensation structure somewhere else is false," Tom Ward, CEO of
Majestic Consulting told Lenders One members during one of the
educational sessions at the conference. "Issues like a short-term missed
closing have a phenomenally long-term impact on a loan officer's book of
business and can be just as or more important than compensation to a
decision to change employment. The shift from a less-time sensitive
refi, to an intricately coordinated purchase transaction exposes a lot
of inefficiency in the process. Now there is a real deadline, the ‘I
have a borrower with their belongings in a truck and nowhere to go'
deadline. If you miss that deadline, that borrower is unlikely to come
back, and that Realtor is unlikely to refer again."
The survey of randomly selected loan officers from around the country
identified three consistent reasons loan officers leave a company:
-
The lender cannot close loans on time, putting stress on the loan
officer's relationships and destroying borrower and referral agent
confidence;
-
Leadership has not updated their perspective on, nor do they provide
sufficient training or support for pursuing new purchase business; and
-
A lack of confidence that the leadership team understands, anticipates
and is prepared for market and industry changes.
"Loan officer retention is a critical business issue we hear about time
and time again from our members," commented Jeff McGuiness, CEO of
Lenders One. "This survey highlights the importance leaders must place
on both the manufacturing process and their service teams so that both
are in synch. Production efficiency and quality are directly related to
sales and service efficiency and quality, regardless of the market
cycle. A holistic approach is crucial to ensure stability and reduce
disruptive turnover in the long run."
The survey also found that it takes almost seven months from the time a
loan officer decides to leave a company and when it actually happens,
Ward said. "That's a remarkable amount of loyalty," he commented.
"What's more, we found that the company that may initially start loan
officers thinking about leaving is not usually the company they end up
joining."
About Lenders One® Mortgage Cooperative
Lenders One (www.LendersOne.com)
was established in 2000 as a national alliance of independent mortgage
bankers, correspondent lenders and suppliers of mortgage products and
services. Members of the St. Louis-based platform originated more than
$224 billion in mortgages in 2013; collectively ranking as one of the
largest retail mortgage origination entities in the U.S. Lenders One,
nearly 275 lender members strong, is managed by a subsidiary of
Altisource Portfolio Solutions, S.A. (NASDAQ: ASPS).
About Majestic Consulting
Majestic Consulting was established in 2006 by Tom Ward, following the
sale of Majestic Mortgage, a profitable 450 million dollar multistate
mortgage banker. Majestic specializes in Profitability® consulting for
the mortgage industry. Tom has seen thousands of P&L's and his One
Transaction Thinking® System and Business Blood Pressure® Methodology
has revolutionized the way P&L's are being reviewed today. Additional
information is available at www.MajesticConsulting.com.
About Altisource®
Altisource is a premier marketplace and transaction solutions provider
for the real estate, mortgage and consumer debt industries offering both
distribution and content. We leverage proprietary business process,
vendor and electronic payment management software and behavioral science
based analytics to improve outcomes for marketplace participants.
Additional information is available at www.altisource.com.
Investor Contact:
Altisource
Michelle Esterman, +352
2469 7950
Chief Financial Officer
Michelle.Esterman@Altisource.lu
or
Press
Contact:
Altisource
Kristi Kovalak, 314-817-1313
Director
of Marketing
Kristi.Kovalak@Altisource.com
Source: Altisource
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