Many analysts who cover the mortgage industry believe the worst of the current cycle may be in the rearview mirror.
In 2022 and 2023, rapidly rising mortgage rates and shrinking volumes sent shockwaves throughout the industry and led to massive job cuts. But analysts expect growth in both purchases and refinancing this year.
According to data from US Bureau of Labor Statisticsthere were 343,000 mortgage employees as of May 2023. This number was down 15% year over year and 18% below the peak of 420,000 employees in July 2021, when the average 30-year fixed mortgage rate was less than 3%.
As interest rates decline and housing inventory stabilizes, mortgage companies will likely begin to ramp up their hiring strategies.
In this climate of cautious optimism, industry veteran Paul Gigliotti is leading an innovative educational project designed specifically to meet the evolving needs of mortgage executives and recruiters.
In 2021, Gigliotti created 360 axis 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 every step of the process. Additionally, the program aims to improve diversity across the industry. Axis has lending and title academies, and the Origination Academy is scheduled to launch in spring 2024.
The programme, which accepts five to 10 learners per group, has helped 28 individuals since its inception. Many sponsors, incl EscrowTab, lindworks, formfree, Mason Mac, Catic Foundation, Catek address, First American title, the quality, Fortis Mortgage, Lyndark And No gatemade educational opportunities available free of charge.
The 90-day program, led by Dean of Education Jerry Herrera, is divided into three parts. Graduates of the program typically find employment with lenders, technology companies, fintech and proptech companies, or title companies.
The first 30 days establish a basic understanding of mortgage lending concepts. The next 30-day segment, called the “Lab Module,” provides hands-on experience with software from companies like Qualia, Escrow Tab, Calyx And Exchange between continents (ice). The program concludes with a paid internship, providing an opportunity to learn about the company in the real world.
“Axis 360 Lift stands for bridging the education and opportunity gap in the housing industry by offering a comprehensive solution to the industry, the next generation of consumers and the next generation of employees by offering assistance, not handouts,” Gigliotti said. Interview with HousingWire.
Gigliotti noted that Axis recently secured three title-level student internships. Hiring is expected to rebound again on the lending side in the third quarter of 2024.
“Not all aspects of housing have been hit as hard as mortgage lending,” Gigliotti said.
Many of Axis' trainees come from sales-based jobs in hospitality, retail or insurance, making it easier to adapt to the mortgage business. But some of them are completely new in this field.
Darla Hall was a licensed respiratory therapist before deciding to jump into the mortgage industry. Hall joined the first Axis program in 2021, learned the ropes and took on a paid internship at EscrowTaba software company, where she now handles sales support.
Hall remembers being excited to dive into a different career path.
“The mortgage was something completely new, something new, something that was going to be a challenge,” Hall said. “After several conversations with Paul, I knew I wanted to join the Axis.”
Brandon Weiss, CEO of EscrowTab, hired Hall shortly after she completed her training. Hall stood out compared to the other candidates for the entry-level position because she already had experience and knowledge of the industry through her training. Additionally, Weiss knows Gigliotti and is confident in his ability to attract talented candidates.
“I knew a background check had been done. I knew personality tests had been done. I knew Darla's characteristics would be a good fit for our organization. That gave me a lot of comfort while recruiting her,” Weiss said.
Entry level MBA initiative
In a parallel effort, he rose Mortgage Bankers Association (MBA) Introduced “Mortgage Banking Commitment” in 2023. In collaboration with Lennar Mortgage And at Barry University in Miami Shores, Florida, the program aims to train beginners in the mortgage field.
The one-semester Executive Certificate Program is conducted through a combination of in-person and virtual sessions. It draws on content from the MBA School of Mortgage Banking and Loan Origination School, including prerequisite coursework.
“I think many people in the industry would agree that for a lot of entry-level jobs, a college degree is not required,” David Aubin, MBA vice president of education, operations and programming, told HousingWire. “But we must have a basic understanding of the loan life cycle, and the rules and regulations that guide and govern our industry [and] Technology that drives us forward, quality control, quality assurance and fraud [prevention] “It's very important.”
Experience and prior relationships are often considered key factors for success in the mortgage industry. Therefore, Gigliotti pairs learners with mentors who can then help them succeed in the industry.
Amy Moses, Vice President of Marketing and Communications at EscrowTabRaquel Porras, Director of Marketing and Social Media at New American Financeare among the few professionals who have been accepted as mentors for the hub.
Helping create new employees in the industry enhances retention, according to Michelle Molina, director of strategic growth at American Mortgage Companya New York-based multi-channel bank.
“If an employee knows that you believe in them, that you care for them, and that you are setting them up for success, they will be excited to join that company knowing that someone has invested in them,” Molina said. “They will stick around because they know they can grow and that they have the support they need to succeed.”
It's also beneficial for companies, which can tap into a pool of candidates with a diverse range of perspectives, backgrounds, and knowledge, Molina added.
tearing down 'Trust barriers'
Data on diversity in the mortgage industry is difficult to find. But a consortium of 19 organizations helped produce this year's edition of DEI Global Real Estate Survey, The only institutional study of DEI management practices and data measurement in the commercial real estate industry.
Although this survey does not take into account the residential side of the industry, it provides useful context for understanding the demographics of real estate hiring in the U.S.
In 2023, the survey found that 58.6% of workers in commercial real estate companies are men, while 41.4% are women. In executive management positions, 74.3% were men and 25.7% were women.
Additionally, 68.8% of employees at real estate companies were white, while 29.7% were people of color. In executive management positions, 85% were white and 14.7% were people of color.
Amber Lawrence, associate vice president for Diversity, Equity and Inclusion at the MBA, emphasizes the importance of education in expanding opportunities for all individuals. She said the mortgage industry's historical background, marred by disenfranchisement and discriminatory practices, had erected “barriers of trust” between underserved communities and mortgage institutions.
Lawrence argues that a more diverse workforce, which reflects the communities served, can help foster a deeper sense of trust. The power of education on this matter can be “limitless,” she said.
“When one thinks about the historical nature of what this industry represents, it represents a mistrust, and I think we are trying to undo that that has been going on for several decades,” Lawrence said.
“And that's a slow arc toward freedom, I would say, so I think when you have people of color (in the industry), the ability to trust is maybe a little bit easier. It eases the path to trust, which creates more opportunities to build wealth because that's What real estate does.
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