Looking back, non-bank mortgage lenders increased hiring in September, adding 2200 full-time employees to their payrolls. That’s a big jump from the 900 additions in August. These new employees were all part of an overall rise in September employment to 315,000 new jobs, the highest increase since 2008. Looks as though things may be looking up after all.
Strange though that this hiring boom came at a time when everyone is predicting a sharp decline in refinancing activity but a slight uptick in purchase business. Looks as though that may be due to the fact that traditionally lenders need more people to service a purchase market when compared to handling refi’s.
Unfortunately, it looks as though non-bank lenders may still be relying on additional staff to handle their challenges instead of the increased use of technology, or other available resources. Like other product manufacturers, lenders need to find ways to do more business, and produce more product, with fewer people to stay competitive, and maybe stay in business. 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 real-time communications through the use of closing portals will minimize delays and streamline information transmittal and closing times. All contribute to reduced costs and increased profits.
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 through outsourcing to vendors who specialize in these services.
These steps will reduce the need for additional staff as well as, the additional space and the equipment needed to support all those extra people. All pointing to a much improved bottom line.
So as purchase business picks up and creates the need for more resources, look to technology and outsourcing to minimize your additional expense. Smart manufacturers have learned to produce more product with fewer people through the use of technology.
To take full advantage of the new upcoming purchase market you’ll need to do the same.