Industry consultancy Hammerhouse forecasts consolidation due to dwindling refinancing but competitive demand for originators who can source purchases in 2013.
“Even if rates do not rise, the pool of those willing and able to refinance will grow smaller,” the Mission Viejo, Calif.-based recruiting and advisory company said in a recent report, which finds that there “will be fewer people and companies needed in such an environment.”
While forecasting that companies too dependent on refinancing will either merge or disappear, the report finds there will be continued growth in brokerage ranks as top producers will continue to move away from big bank mortgage operations due to the relative favorable flexibility and benefits there.
In particular, “originators with transferrable, balanced, referral-based books of business will be in high demand,” according to the report.
Also, “with the market preparing to move to purchase-orientation” Hammerhouse believes there will be a need for “younger originators with the hustle needed to succeed with Realtors and to target younger, first-time buyers.”