Hiring among non-bank mortgage lenders increased in September, adding 2200 full-time employees to their payrolls. That’s a big jump from the 900 hires they added in August. The additions were part of a rise in September employment to 315,000 new jobs, the highest increase since 2008. Maybe things are looking up.
This hiring increase by non-bank mortgage lenders comes at a time when predictions are for a sharp decline in refinancing activity but a slight uptick in purchase business. Traditionally, lenders need more people to service a purchase market when compared to their needs to handle refi’s.
It looks as though lenders are still depending on more people to handle their challenges instead of more technology or other available resources. Lenders need to find ways to do more loans with fewer people. To stay competitive, and maybe stay in business, other manufacturers have learned to do so. Innovation is the key.
Online apps and consumer communication can make originators and processors more productive. Automated information gathering, document imaging and loan processing will cut processing times and save money. Electronic documents with electronic, real-time communications through the use of closing portals will minimize delays and streamline information transmittal and closing times.
Required pre and post-closing audits, along with any desired discretionary reviews, can be performed using in-house platforms specifically designed for this purpose, or these may be outsourced to vendors who specialize in the services.
These will all reduce the need for additional staff, plus the need for the additional space and equipment needed to support these additional people. All this points to a better bottom line.
So, as purchase business picks up and the need for more resources to service the needs of the buyer’s increases, look to technology and outsourcing to minimize the additional related expenses. Smart manufacturers have learned to produce more with less staff and less related expenses through the use of increased technology.
You need to do the same to take full advantage of the new upcoming purchase market.