TheMReport — News and strategies for the evolving mortgage marketplace.
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Feature Got Jobs? Mortgage Banking's Employment Situation What's driving hiring trends in the housing sector, and how will the symbiotic relationship between lending growth and industry jobs impact the marketplace in 2013? By Andy Beth Miller I n today's ever-changing economy, there is much discussion about what to expect when it comes to the mortgage banking industry and its prospects for 2013. Lending and investment firms wonder whether their interests are being protected, while their individual employees are asking if jobs and retirements are secure, ready, and waiting when they need them. To address these pressing issues, experts delved deeply into the changing dynamics and emerging trends now driving the market, exploring the estimated employment environment and job availabilities predicted for the coming year. Even with a sluggish economy that has seen better days, investors seem to be opening their wallets again, many upping their stock shares despite the fact that individual businesses are still struggling to remain afloat. Examples of this shift in spending and the simultaneous rise in stock values can be seen throughout the market, reflected through a lift in share values at companies like Blackrock, JPMorgan Chase, Bank of America, and Citigroup, to name a few. And as bank stocks continue to rise, the stats seem to indicate a ray of hope in that, for the first time since the market fell into full financial crisis mode, lending has begun to increase and the mortgage arena in particular seems to be a major player in that revival. Hiring's High Note A mid this encouraging momentum, mortgage banking's employment situation is displaying improvements. Don Frommeyer, president of the National Association of Mortgage Brokers, confirmed this hypothesis to Fox Business, stating that within the lending industry, "Business is actually better than it's been over the last three years." Frommeyer continued to cast a positive light over the future of companies, asserting that, "There's a lot of interest right now in purchases, a lot of interest in streamlines and refinances . . . and rates being down is, I'm sure, something that's helping generate that business. Mortgage originators are operating at capacity." Rick Glass, president of RT Glass & Associates, also weighed in on the state of industry employment, explaining, "There is an uptick in demand for senior management in the industry. I'm seeing greater executive search needs for 'change management' with integrated skill sets to meet mass regulation and drive through the risk minefield unscathed, as well as leadership to scale capacity issues. I'm also sensing a talent shortage of sorts facing us today, where post-crisis mortgage banks positioning for the 'uncertain future' are seeking operational, origination, and servicing platform leadership talent to help guide them through the onslaught of regulation, while protecting the franchise and mitigating risk." More specifically, Glass explained the dilemma for those firms hiring in that "the shift to sustain quality and performance through a robust risk-management foundation directly connecting data, analytics, transparency, and governance across the enterprise as a standard operating practice is emerging. The expertise to lead this approach requires a track record and discipline of driving change and implementing cuttingedge solutions and controls to similar challenges harnessing these new tools." The M Report | 27