The 2008 financial crisis was second worst behind the Great Depression in the 1930s. It affected not only the U.S. but countries worldwide, making stocks crash and calling for contentious government bailouts.
Following the bailouts, the government put into effect heaving regulations that has made it more difficult to obtain a mortgage. It has helped but also has hindered the process.
How have these new mortgage loan standards affected loan officer jobs?
Much like various other businesses, the mortgage loan originator industry will be hiring millennials, who will comprise 40 percent of the labor force by 2020. The challenge is, a small amount of millennials find the industry attractive as a job.
Additionally, the truth is millenials are typically not as concerned with securing financing on a home. This is relative to past generations. Studies have shown that millennials are looking for distinct experiences, exceptional support services, and powerful marketing. Similar to how automobile dealers have made car financing commercials somewhat exciting, so too can the mortgage lenders if they want to attract that audience.
Businesses overall are applying more of their marketing efforts toward the younger generation, utilizing the items that pull them in. Millennials prefer to have options at their disposal. The older traditional methods are a turn-off. As a result, mortgage companies are providing mobile applications and efficient software to draw in more millennials.
Residential lending companies aren’t just trying to persuade millennials into applying for home loans—they’re hoping to get them to become loan officers. As discussed, a career as a loan officer may certainly be attractive to a good amount of millennials. While it may not be the new job at an exciting start-up tech company, it features many of the important aspects millennials want in their careers, like flexibility and the chance to rise in the ranks.
Based on data from the Mortgage Bankers Association, the average age of a loan officer is 54. As soon as these mortgage originators get close to the age of retirement, younger faces will need to fill in the vacancies.
Despite what millennials think about mortgage loans now, they may need them in the years to come. According to a 2015 study by Mortgage Bankers Association, roughly 16 million households will be ready to make a move into their own home by 2024. That demand for housing will come from millennials, baby boomers, Hispanics, African-Americans, and Asian-Americans. Logically more licensed loan originators are needed and it’s likely that, those will be millennials.