Hello, LOs!
I'm investigating how some mortgage lenders have changed loan officers' compensation over the last few months as a way to adjust their overall costs in a reduced revenue landscape.
And there's bad news on this front. "The mortgage game began to change, our incentives and volumes," said an LO focused on the retail channel who was recently laid off from a top mortgage company and prefers anonymity.
I've heard from four different LOs about companies changing the variable compensation, which is based on the employee's volume, resulting in the LOs getting fewer dollars per loan originated.
One example: "You need now to make more than 11 loans to get paid extra money. If you do less than that, you get nothing extra," said the same LO about the situation in the company she worked for.
According to the LOs, not everyone can make their origination goals in a shrinking mortgage market. Without proper compensation, some professionals have been forced to quit their jobs.
Unfortunately, the challenges in the market will remain at least for the second quarter.
During the first-quarter earnings season, top executives of publicly traded mortgage companies, such as Rocket Mortgage and Homepoint, said they expect more declines in origination and margins this year. To deal with this scenario, they seek to reduce costs.
LOs, what has your experience been so far? Has your fixed salary or variable compensation changed over the last few months? Please share your experience with me at at flavia@hwmedia.com.
Flávia Furlan Nunes
Mortgage reporter, HousingWire
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