Training Is Up
The housing crisis and especially the unusually high demand for loss mitigation expertise has affected the way the industry is trying to fill the gap.
In times when most of these specialists are taken large banks like Citi can still afford to hire and train large numbers of new staff. During the second quarter alone Citi increased its loss mitigation staff by 35%.
Smaller banks and other firms, like third party servicing and technology provider Infusion Technologies are looking for a high efficiency approach to recruiting and training.
Infusion is focusing on both present and future effect of its training investment. Executives say hiring mortgage professionals who have a loan origination background increases the probability to see a better return on their investment in the longer term. Advantages, according to Insufion, include the fact that these professionals are familiar with the mortgage process, documents and forms, basic requirements, understanding of credit scores and other data. They are easy to train and when the market turns back to normal, they remain part of the workforce.
Another intersting market development is the dramatic growth in the appetite for grass-roots or self-help mortgage education.
Given the scale of the demand for loan modifications both lenders and distressed homeowners will benefit from it. Online and phone accessible tools can genereate computer-customer loan modification packages that help speed up the process.