“If you’re not making $1M this year as a loan officer, you’re grossly incompetent:” Mortgage lenders sense a new gold rush

Quicken Loans saw busiest day for mortgage applications in the company’s history

TRD NATIONAL /
Mar.March 05, 2020 08:00 AM
The nation’s biggest lenders are anticipating a bumper year of refinancing and new home loans (Credit: iStock)

The nation’s biggest lenders are anticipating a bumper year of refinancing and new home loans (Credit: iStock)

Trust mortgage lenders to see opportunity in a global epidemic.

A drop in interest rates following the coronavirus outbreak is hastening a hiring spree across the mortgage industry, with some of the nation’s biggest lenders anticipating a bumper year of refinancings and new home loans.

Monday was the busiest day for mortgage applications in the 35-year history of Quicken Loans, CEO Jay Farner told Bloomberg. The frenzy for loans is setting off a war for talent, as lenders look to poach underwriters who can handle the incoming deal frenzy.

“If you’re not making $1 million this year as a loan officer, you’re grossly incompetent,” Gold Star Mortgage Financial’s Eric Mitchell told the publication. “‘I tell them, ‘We’re not working 40 hours a week, kiss your families goodbye.’” JPMorgan Chase is internally reshuffling its team, transferring many staffers from the home-equity department to mortgages to help satisfy the demand, the bank said in an internal memo viewed by Bloomberg.

In response to the rapidly spreading virus, the Federal Reserve slashed its benchmark rate by half a point Tuesday, its first such emergency since the housing market collapse of 2008. The Fed noted that while the U.S. economy remains strong, “the coronavirus poses evolving risks to economic activity.” The cut will reduce rates to 1.0-1.25 percent.

Average 30-year mortgage rates will drop below 3.25 percent and likely remain there for 2020, Mike Patterson of Freedom Mortgage Corp told Bloomberg. Investors have been brainstorming on how to price a Ginnie Mae 30-year fixed-rate mortgage security that would yield just 2 percent, Patterson added.

Real estate companies have taken a hit from fears of the coronavirus. Last week, a measure of real estate stocks called the SNL U.S. REIT Equity index fell about 12.3 percent, according to S&P. [Bloomberg]TRD Staff


Related Articles

arrow_forward_ios
Sales of existing homes in the U.S. hit a 14-year high last month, according to a new report. (iStock)

US home sales hit 14-year high

US home sales hit 14-year high
An increase in mortgage applications came despite interest rates ticking up (iStock)

Applications for home mortgages surged last week

Applications for home mortgages surged last week
United Wholesale Mortgage Mat Ishbia and Gores Holdings IV CEO Alec Gores (Photos via United Wholesale Mortgage and Gores)

United Wholesale Mortgage goes public with $16B valuation

United Wholesale Mortgage goes public with $16B valuation
(iStock)

Banks required balloon payments, stayed mum on foreclosure moratorium

Banks required balloon payments, stayed mum on foreclosure moratorium
Fed Board Governor Lael Brainard (Getty, iStock)

Fed wants banks to step up lending in low-income areas

Fed wants banks to step up lending in low-income areas
Wall Street investors are prepared to buy and turn single-family homes into rentals when forbearance programs expire and homeowners look to sell. (iStock)

Wall Street investors bet on single-family rentals as mortgage payments stack up

Wall Street investors bet on single-family rentals as mortgage payments stack up
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Fed Reserve Chairman Jerome Powell (Getty)

What low interest rates through 2023 means for real estate

What low interest rates through 2023 means for real estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...