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36 | M R EP O RT QUICK TAKE Where the Grass Is Greener Why is it getting harder to keep good mortgage loan officers? Here are five keys to retaining that talent. By Brian Miller A s the market contin- ues to turn and loan volumes retreat from the historic highs the industry saw last year, some lend- ers are trimming staff in response to excess capacity. But one group of employees no lender wants to lose is productive mortgage loan originators (MLOs). MLOs with the experience and the skills to keep business coming in even as the market retracts are still in high demand. Companies that have great producers on staff don't want to lose them, and holding onto them can be chal- lenging for some lenders. There are several reasons loan officers may consider moving to another company. Understanding them will position your shop to hold on to its best MLOs during these challenging times. Here are five reasons MLOs may decide to move to a new company. Reason 1: The Lender Makes Home Loans Affordable A ffordability is a real challenge for today's homebuyers. Even with home prices softening, interest rates are still relatively high. Monoline lenders or those who only earn revenue from a single origination channel can be forced to raise rates and fees to realize a profit. Diversified lenders with multiple channels or a profitable servicing operation have more flexibility to keep margins low, increasing the MLOs' business. The difference can be 75 bps or better. That's hard for a loan officer to ignore. Reason 2: Products Attuned to Today's Real Estate Market O n some level, loan programs are similar across lenders, especially those that only sell to the GSEs. But in today's market, home- buyers, home sellers, and new home builders need niche products. Homebuyers have always ben- efitted from state and local down payment assistance and closing cost programs. With rates rising, they'll also want to use one-time close (OTC) construction mort- gages. Buydown loans, whether 2/1 or 1/1, appeal to new home builders and home sellers who don't want to lower their prices. In high-cost areas, solid jumbo offerings matter, and MLOs need jumbos, non-QMs, and alternative options in all markets. Where af- fordability is a challenge, offering manufactured home loans and renovation mortgages can help borrowers take that first step into homeownership. Lenders that anticipate (or at least quickly respond to) market changes by rolling out new prod- ucts will attract the best MLOs. Reason 3: Speed From Lead to Close I n a purchase-money market, MLOs live or die by their ability to never miss a closing date. With the real estate market still very hot in many areas, agents are advising their clients to be aggressive and close quickly. That puts pressure on lenders who don't have stream- lined origination processes in place to remove friction. When a loan officer sees a com- pany staffed with great underwrit- ing teams, using modern technol- ogy, they know they can get loans closed in about 21 days, allowing them to hit the closing date and earn higher borrower satisfaction and more agent referrals. Planet Home Lending targets home sellers with a guaranteed clos- ing product, called Cash4Homes, and with bridge loans. Cash4Homes enables home buyers to compete with all-cash buyers in markets where investors are active. We can offer that program because we're a well-funded, multichannel firm with the expertise and capital to purchase and resell any property that doesn't close on time. Reason 4: The Lender Has Invested in a Solid Tech Stack P rofessional MLOs know how powerful the right technology can be for building their business. If they see a lender trying to keep pace with an old LOS and few other tools, they'll quickly begin to look elsewhere for employment. Even more important than new technology is MLO choice. If they have achieved success in the past with a certain tech stack, they'll want to stick with it. Giving them the ability to affordably build (or rebuild) their own tech stack with different options—as many as 10 or more—is a sure way to get their attention. Reason 5: The Lender Offers the MLO Marketing Support T he industry's best MLOs know how to find their own business. They are experts at prospecting within their commu- nities and have the connections to keep their pipelines full. But a little help is always appreciated. Marketing technology is key to winning customers in today's market and MLOs will seek out lenders who understand this. A lender that offers individual loan officers a full scope of mar- keting support, including personnel who can help them build, manage, and enhance their online reputa- tion will be the first to attract new MLOs, because they know this will win them more business. Pricing, service levels, market- ing support, tech stack excellence, and product variety grow ever more critical during challenging markets. Understanding these five issues and taking the actions that deliver them will do a lot to get MLOs who are considering a change of employment to consider your firm. The views and opinions ex- pressed in this article are those of the author and do not necessarily reflect or represent the views, policy, or position of Planet Home Lending. BRIAN MILLER is SVP of Talent Acquisitionat Planet Home Lending. He can be reached at BMiller@ PlanetHomeLending.com.