Shortage of Loan Originators and Commercial Lenders Shakes Foundation of Industry
Following the 2008 recession, the American economy has witnessed the rise of the non-bank; organizations such as Quicken Loans and PennyMac continue to gain traction as traditional mortgage providers decrease in number.
One explanation for this shift involves a massive talent shortage for commercial lenders and loan originators.
The Boston Globe recently acknowledged this market trend in relation to baby boomer lending officer retirement. Because of this wave of retirees, organizations are “scrambling to fill hundreds of positions critical to reviewing, approving, or rejecting loans for all sorts of businesses, from manufacturers seeking to buy the latest equipment to aspiring restaurateurs opening new eateries.”
According to The Boston Globe, the commercial lenders situation is so dire that banking and financial organizations are scouting college campuses more frequently to find fresh talent in this space.
The types of candidates needed to fill such roles must be familiar with dealing with business owners, assessing risks, structuring loan deals, and having the business contacts to keep drumming up new commercial-loan business, according to the Globe. Thus far, such talent cannot be found consistently in today’s market.
Another distinct reason for such a talent shortage is due to a lack of training for such professionals. In recent years, banks and financial organizations have cut back significantly on training commercial lenders and loan officers. This was in response to a surplus of such talent in earlier years and not responding quickly enough to rising demand.
Recognizing these shortages in today’s competitive market is key to finding and retaining top talent. Employers are responsible for providing the pay, benefits, work environment, and work-life balance that candidates now have the right to demand.
Utilizing unique methodologies to uncover these candidates will be key to building a pipeline of qualified talent.
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