Turnover is an ongoing challenge for lenders: keeping the great people they have and luring others into their fold. A significant number of producers are on the move at any given time according to mortgage industry consultancy firm Stratmor Group, but the numbers are most extreme at the high and low end of the turnover spectrum during the beginning and the end of the year.
Migration numbers vary for mortgage loan officers (MLOs) at banks and independent lenders, but there's also a notable difference between the two times of the year: Turnover is highest in the fourth quarter and lowest in the first according to Stratmor's 2017 Originator Census Survey. It may come as good news that we're still in the slow time of year for people jumping ship, but the question leaders need to ask themselves is, "What are we doing to attract and retain top people?"
With the first quarter nearing its end, companies should be focusing on avoiding the talent drain that begins accelerating in April and continues throughout the year, as well as positioning themselves to capture dissatisfied producers as they begin their searches for greener pastures. But before companies can make a compelling case that they're the perfect solution for what ails loan officers and teams, it's a good idea to do a self-check:
- Where's the leakage in your business?
- What are you doing to stop it?
- Are you as efficient as you'd like to be?
- What changes are underway to get you there?
- Are you just dealing with today or are you planning for the next few years?
- Are you managing or innovating?
It's important to uncover the holes in your own business and determine actions that may be required to fix them before attempting to offer your organization as a solution to MLOs and teams you wish to retain and recruit. Brave self-examination and conscientious improvement allows companies to present their value propositions authentically and effectively. Get more insight in the Expert Strategies podcast, "Recruiting Loan Officers." Loan officer migration ramps up in earnest soon…are you ready for what the next three quarters may bring?