The hiring situation in the mortgage business has been dismal. Total employment has fallen from a high of more than 500,000 at the top of the market to less than half of that currently.
Of course, it is hard to imagine a time when the mortgage industry will need a headcount of 500,000 again.
But there are firms in the business that are hiring, and all businesses should take a look at what they're doing.
Why? They are hiring because they have more business.
Adding new hires is one of the most direct ways the industry can help lift the economy out of the tepid period it has been going through the past two years, neither in recession nor really healthy.
Government has been doing its part to stimulate the economy, some would argue too much. Now we need business and consumers to step up.
Consumers have gone from being overleveraged in debt before the crash to become net savers gain. Why are they sitting on their hands? Uncertainty about employment is the biggest reason.
So the industry adding jobs would boost both of the big players in the industry that are hanging back: consumers and businesses.
A couple of the vendors we spoke to at the recent 5 Star Institute in Dallas mentioned that they were hiring. Of course, the focus there is REO and default servicing, fairly hot topics currently. Still, the hiring is a positive sign.
Wingspan Portfolio Advisors, a Dallas-area specialty servicer, is adding headcount rapidly this year. CEO Steve Horne hopes to double employees to 1,000 by the end of the year.
DecisionReady, Irvine, Calif., a vendor specializing in compliance reviews, also said it was hiring.
Now, we're not talking about refinance hiring, where the people get fired again when apps begin to slow (wasn't technology supposed to smooth that process out?) but permanent, long-term hiring.
Nor would we advise it where the markets are at a low ebb, such as homebuilders or mortgage brokers.
But we would advise most firms in the mortgage business to look at their headcount with a view towards hiring, if it makes sense.
It makes sense if there is a new field or opportunity to target, and if there is, that will help both the individuals hired and the industry as a whole.
