What Makes a Mortgage Operation Attractive to Loan Originators?

By: •

I spoke Monday at a sales and production event put on by one of our retail mortgage banker clients.  My client has recently partnered with a strong regional bank and implemented additional technology and business infrastructure to support its growth plans for the next 2-3 years.  The audience was a group loan officers and branch managers, and the theme was to outline the company’s vision, strategies and action plans to help management execute on the growth plan.

The CEO and his management team have spent the last year studying loan officer needs and the results of the recent events impacting the industry.  Armed with this information, they developed a strategy to build a profitable loan officer centric mortgage bank.  You see, the CEO is a past loan originator and believes a sustainable profitable company must have a foundation based on a group of successful loan officers.   

Some of the key aspects of the plan are:

  1. Develop a strong mortgage banking platform that can provide “killer” service and support to the loan officer
  2. Ensure loan officers have a consistent competitive price in the market place
  3. Purchase the best-of-breed technology to support origination and mortgage banking activities.
  4. Provide marketing support to help loan officers increase production
  5. Generate profits without taking on too much credit risk, reducing potential losses from loan repurchases
  6. Raise adequate capital to support the company’s growth and ensure uninterrupted warehouse funds
  7. Offer competitive commissions while ensuring the company can be profitable

Over the last year, we’ve seen many loan officers and mortgage brokers desiring to bolt to a strong regional mortgage bank.  Many mortgage brokers are worried about the many headwinds confronting them today and appending to a regional mortgage bank provides a nice alternative.  Some mortgage bankers are also looking to append to a larger and better capitalized entity, allowing them to focus on originations rather than dealing with the risks associated with operating a mortgage bank.  

If you’re an originator and looking to find a new home, what are some of the drivers you desire from a new partner?  Is the operator above on track or are there other considerations? 

Let us know your thoughts