Loan officers rank technology high among reasons to stay or go

Just as many top producing originators would consider jumping to a competitor for better technology as they might leave for a hefty pay raise, according to survey results released this week.

The overwhelming majority of high performing producers, 89%, said not having access to digital mortgage platforms or tools was of enough concern for them to consider joining a competing lender according to a survey conducted by point-of-sale system Floify. At the same time, the exact same share said higher compensation of 20% or more would also cause them to seriously think about leaving.

"Our goal with this survey was to understand how employers can recruit, engage and retain top-producing loan officers in the context of current market conditions," said Sofia Rossato, Floify's president and general manager, in a press release.

"From the survey results, we see a disconnect from what employers may be offering their top producers and what motivates top producers to stay or look around for greener pastures."

Loan officers place a high premium on quality, updated technology as they look to maximize their production and profits. Among the top ways lenders can attract new officers is to give them the ability to choose their own technology stack or available platforms, Floify found. A significant survey majority of 95% said having flexibility to customize technology was vital to their success. 

Better document collection tools rank high on loan officers' wish list. Half of all top producers are already using document-management software in anticipation of likely growth in origination volume, with 39% indicating they were using a secure platform to help them with collection. The Mortgage Bankers Association expects business to begin increasing in late 2024.

But 93% also indicated they wanted to find a faster and easier way to obtain necessary forms from their clients, with only 38% saying they were satisfied with what was currently in use.

Similarly, 50% of loan officers said their employers should be giving them the technology to help manage the challenges and costs associated with credit scoring tasks, as the industry faces questions about upcoming changes in policy. Approximately 43% and 42% expect companies to make tools available to assist with property valuation and compliance. 

Many mortgage industry leaders are already paying heed to such concerns and setting themselves up for technology's greater role in home lending. Despite challenges to their bottom line over the past year, research from National Mortgage News' parent company, Arizent, determined a majority of businesses planned to make tech investments in 2024, especially related to artificial intelligence. 

When it comes to job satisfaction in Floify's survey, 43% cited poor work-life balance as a leading reason they might choose to leave a company, closely followed by few opportunities for advancement, which was noted by 42%. Poor commissions or splits would be important enough for 38%.

"Sometimes it's the simple things — healthcare, a fun work environment or a good work-life balance that LOs find motivating," Rossato said.

Among other survey findings, consistent communication with customers is what made top producing loan officers excel the most, they said. Forty-nine percent thought the most crucial time to keep communication open was when their clients were in the process of applying for their loan, while 40% ranked the pre-qualification phase on top. 

Meanwhile, connections with professionals are still essential to customer acquisition, with 68% saying they partnered with real estate agents, divorce attorneys and other businesses to find new business.