Many mortgage industry analysts believe the worst of the current economic cycle may be in the rearview mirror.
In 2022 and 2023, rapidly rising mortgage rates and contracting volumes shocked the industry and caused large-scale layoffs. But analysts expect both purchase and refinance originations to increase this year.
According to data from US Bureau of Labor StatisticsAs of May 2023, there were 343,000 mortgage-related employees. This number is down 15% year over year and 18% below the peak of 420,000 employees in July 2021, when 30-year fixed mortgage rates averaged less than 3%.
As interest rates ease and housing inventory stabilizes, mortgage companies are likely to start ramping up their hiring strategies.
In this climate of cautious optimism, industry veteran Paul Gigliotti is spearheading an innovative educational venture tailored to the evolving needs of mortgage executives and recruiters.
In 2021, Gigliotti axis 360 lift, an online academy designed to educate aspiring mortgage and title professionals. Axis 360 Lift strives to provide a comprehensive understanding of the mortgage business by addressing each step of the process. Additionally, the program aims to improve diversity across the industry. Axis has a Loan Academy and a Title Academy, with an Origination Academy scheduled to open in spring 2024.
The program accepts 5-10 learners per cohort and has supported 28 learners since its inception.Includes several sponsors escrow tab, render works, form free, mason mac, CATIC Foundation, Catic title, America's first title, qualia, fortis home loan, renderer and gatelessmade educational opportunities available for free.
The 90-day program, led by Superintendent Jerry Herrera, is divided into three segments. Graduates of this program typically go on to work at financial institutions, technology companies, fintech and proptech companies, or title companies.
In the first 30 days, you will establish a basic understanding of mortgage lending concepts. His subsequent 30-day segment called “Lab Module” features Qualia, Escrow Tab, frame and intercontinental exchange (ice). The program concludes with a paid internship, allowing you to experience a real company.
“Axis 360 Lift is closing the education and opportunity gap in the housing industry by providing a comprehensive solution to the housing industry, the next generation of consumers, and the next generation of employees with a hand up, not a handout. “We are aiming to do that,” Gigliotti said. HousingWire interview.
Gigliotti noted that Axis recently secured three student internships at Titleside. He expects lending jobs to increase again in the third quarter of 2024.
“Not every aspect of housing has been hit as hard as mortgage lending,” Gigliotti said.
Many Axis trainees come from sales-based careers in hospitality, retail or insurance, making them well-suited to the mortgage business. However, some people are completely new to this field.
Darla Hall was a certified respiratory therapist before deciding to jump into the mortgage industry. Hall participated in Axis' first program in 2021, learning the ropes and landing a paid internship. escrow tabI joined a software company and am currently in charge of sales support.
Hall recalls being excited to jump into a different career path.
“Mortgage was completely new, fresh and challenging,” Hall said. “After a few conversations with Paul, I knew I wanted to join Axis.”
EscrowTab CEO Brandon Weiss hired Hall shortly after completing his training. Hall stood out compared to other candidates for the entry-level position because he already had industry experience and knowledge through training. Additionally, Mr. Weiss knows Gigliotti well and is confident in his ability to source talented candidates.
“I knew there was a background check. I knew there was a personality test. And I knew Darla's characteristics were a good fit for our organization. So I felt very comfortable hiring her,” Weiss said.
MBA Entry Level Initiatives
In parallel, we are working on Mortgage Bankers Association (MBA) introduced “Mortgage Banking Bound” in 2023. lennar mortgage This program is designed to train beginners in the mortgage business.
The one-semester executive certification program is delivered through a combination of in-person and virtual sessions. It draws on content from the MBA's Mortgage Banking School and Loan Origination School, including prerequisite coursework.
“Many in the industry might agree that many entry-level jobs don't require a bachelor's degree,” David Upbin, MBA's vice president of education, operations and programming, told Housing Wire. Told. “But you do need a basic understanding of the loan lifecycle and the rules and regulations that guide and govern our industry.” [and] The technology, quality control, quality assurance and fraud that drives us forward [prevention] Very important. ”
Previous experience and relationships are often considered important factors for success in the mortgage industry. Therefore, Gigliotti pairs learners with mentors who can help them succeed in the industry.
Amy Moses, Vice President of Marketing and Communications escrow tabRaquel Borras, Marketing and Social Media Manager new american fundingone of the few experts recognized as an Axis mentor.
According to Michelle Molina, director of strategic growth at US Mortgage Companya multichannel lender based in New York.
“When employees know that you believe in them, that you sponsor them, that you are setting them up for success, they know that someone is invested in them. , would be happy to join that company,” Molina said. “They stay there because they know they can grow and they have the support they need to succeed.”
It's also beneficial for companies, Molina added, as they can tap into candidates with diverse perspectives, backgrounds and knowledge.
tear down 'wall of trust'
Data on diversity in the mortgage sector is difficult to find. But a consortium of 19 organizations helped create this year's iteration. Global real estate DEI research, The only company study of DEI management practices and data benchmarking in the commercial real estate industry.
Although this study does not consider the housing side of the industry, it provides context to help understand the demographics of real estate employment in the United States.
A 2023 study found that 58.6% of commercial real estate company employees are men and 41.4% are women. Among business managers, 74.3% were men and 25.7% were women.
Additionally, 68.8% of real estate agency employees are white, compared to 29.7% who are people of color. Among executive positions, 85% were white and 14.7% were people of color.
Amber Lawrence, MBA's associate vice president for diversity, equity and inclusion, emphasizes the importance of education in expanding opportunities for all individuals. He said the historical background of the mortgage industry is tainted by disenfranchisement and discriminatory practices, creating a “wall of trust” between underserved communities and mortgage institutions. .
Lawrence argues that a more diverse workforce that reflects the communities served will help foster a deeper sense of trust. The power of education in this matter can be “limitless,” she says.
“Given the historic nature of what this industry stands for, I think it speaks to distrust and we are trying to dispel decades worth of distrust,” Lawrence said. .
“As I often say, it's a gradual arch to freedom. So I think having people of color[in the industry]makes your ability to trust a little bit easier. It's about trust. and create more wealth-building opportunities because that's what real estate does.”
