JSMedia – Nonbank mortgage hiring is picking up as lenders prepare for the start of a new year. In December, the nonbank mortgage sector added about 2,700 full-time jobs. This represents an increase of about 2% from November. Since the start of the year, the number of full-time jobs in the nonbank mortgage industry has increased for four consecutive months. The number of nonbank employees has increased by more than 1,700 since 2014.
Refinancings are an easier category to enter, and nonbank mortgage originators are often able to offer better rates on refinance mortgages. According to the Mortgage Bankers Association, nonbank lenders will issue $426 billion in mortgages in 2020, down from $604 billion in 2017. Meanwhile, the market share of nonbank lenders has climbed the most in a single year since 2014.
As more consumers look for a mortgage, more nonbank lenders are gaining traction in the market. In 2018, finance Ireland entered the mortgage business, Dilosk began offering owner-occupier loans in late 2019, and Bank of Ireland re-entered the broker market in late 2018. In terms of market share, nonbank mortgage lenders accounted for 10.5% of total drawdowns in the first half of the year, up from 8.3% a year earlier.
Nonbank Mortgage Hiring Picks Up As Lenders Prepare for the New Year
A growing number of nonbank mortgage lenders are hiring in preparation for the new year. Many of these companies offer better pricing and service compared to nonbanks. Besides specialized mortgage services, they are also more flexible with their loan programs, which is great for first-time homebuyers. In addition to hiring, they are also setting up new locations across the country. One example is Freedom Mortgage Corporation, which is expanding its Columbia, Maryland center. With more than 2,700 employees nationwide, it is one of the top 10 mortgage lenders in the country.
As mortgage lending activity picks up in the U.S., the biggest mortgage companies are digitizing the entire process, from the initial consultation to closing. However, the process of applying for a mortgage with a nonbank lender may differ from that of a large bank. A lender’s credit score, income, and debt are factors that will determine the interest rate that they charge for a loan. While they may charge more, the process is usually easier than that of a large bank.
The nonbank mortgage industry has become a popular choice among homebuyers in the United States. For the last five years, nonbank mortgage hiring has increased by 59%. The same trend is true for home buyers. The nonbank lenders are offering more loan products and are more flexible than banks. While they may have lower interest rates, they are favored by consumers who want a fast and easy way to close their loans.
In addition to increasing consumer loan-availability, nonbank lenders are providing a better customer experience. The demand for nonbank mortgages has boosted employment in the industry for loan officers. Nevertheless, some are still concerned about the high-risk nature of the job. While the job is a high-end sales position, many people find it rewarding. A person can earn a lot of money if he or she works hard.
Lenders are also making an effort to find more mortgage brokers. While most nonbank lenders are focusing on traditional lenders, nonbank mortgage brokers can help consumers save more on the monthly payment. For example, the loan broker can work as an intermediary between the lender and the borrower. The broker receives a commission from the lender for the transaction. As a result, mortgage agents are more attractive to homebuyers than traditional lenders.
The mortgage industry is a highly competitive environment. However, the mortgage industry has always faced challenges. Moreover, a mortgage broker is the middleman between the lender and the borrower. As a result, the broker can help the borrower find the best mortgage rate in the market. These professionals also offer advice to homeowners. But a good mortgage broker is a good investment.