The Lyons Den

There is a great article in American Banker dated June 9th, 2008 discussing how the mortgage crisis is causing some lenders to rethink how to compensate loan officers.

I do like some of the proposals like paying the loan officer over time like the insurance industry or how they pay loan officers in the UK. Residuals are always nice and it gets sales thinking long-term.

The more people you can get thinking long term the better everyone will do. If I were able to offer residuals I know the quality and professionalism of my originators would drastically increase and so would the culture.

It would eliminate/reduce short term limited thinkers who are out for the quick buck! It would improve loan quality and reduce risk for all involved in the food chain from origination, warehouse, secondary, investor and servicing.

This entry was posted on June 10, 2008 at 1:19 pm and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.