The mortgage industry is hiring again – but on different terms

Rebecca Richardson
Sep 25, 2024
2 min read

Rebecca Richardson Scotsman Guide Article

The era of hefty compensation packages and substantial signing bonuses is far behind us

After cutting to the bone over the past three years, several large mortgage lenders are beginning to ramp up hiring. These companies are adding sales and operational staff, preparing for the expected drop in rates and subsequent increases in volumes.

However, the industry is approaching this cycle with caution. Different from the boom of 2020 and 2021, lenders now face a more fragile financial situation, an extended pool of experienced candidates, and the likelihood of a smaller refinancing wave.

Consequently, the era of hefty compensation packages and substantial signing bonuses from the biggest lenders is far behind us. Today’s focus is on cultural fit, innovative talent compensation strategies, and leveraging technology to stabilize workforce needs through economic cycles.

“The first thing we are hiring for is more recruiters. We need more recruiters here to help fill all these openings we have,” Erica Danna, vice president of talent management at loanDepot, said. “I’m working on, anywhere the last few months, between 150 and 200 positions at a time.”

loanDepot’s focus is on the sales side, attracting experienced loan officers (LOs) and people who want to join the industry via its accelerated career in effective sales (ACES) program. The company has “never taken our foot off the gas when it comes to experienced originators, but operations are what has cranked up in 2024, so we want to be deliberate about who we’re hiring,” she added.

California-based loanDepot underwent one of the most significant workforce reductions among publicly traded independent mortgage lenders during the downturn, according to Securities and Exchange Commission (SEC) filings.

Among eight publicly-traded independent mortgage lenders—Better Home & Finance, Guild Holding, loanDepot, Mr. Cooper Group, Pennymac Financial Services, Rithm Capital, Rocket Companies and United Wholesale Mortgage (UWM)—all companies had a workforce reduction in the past two years. As a group, the number of employees shrank by 46%, from 88,203 in 2021 to 47,940 in 2023. (The data includes employees at parent companies and subsidiaries, in mortgage lending, servicing and other activities.)