“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

National /
Mar.March 04, 2020 06:19 PM
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
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
A recent study that found 1 in 10 Black homeowners returned to renting between 1984 and 2017 (iStock)

Black homeowners twice as likely to lose homes and return to renting: Report

Black homeowners twice as likely to lose homes and return to renting: Report
Federal Reserve chairman Jerome Powell (Getty; iStock)

Mortgage originations at 2nd highest level in 20 years: Fed

Mortgage originations at 2nd highest level in 20 years: Fed
The increase put an end to the “recent slump” that gripped the purchase market over the past seven weeks (iStock)

Over the slump? Home-purchase mortgages jump

Over the slump? Home-purchase mortgages jump
Lenders issued the most mortgages in 14 years last quarter (Credit: iStock)

Nonbank lenders could give serious boost to cooling housing market

Nonbank lenders could give serious boost to cooling housing market
Opendoor CEO Eric Woo and images of its Opendoor Home Loans app (Credit: Resolute Ventures)

iBuyer startup Opendoor launching new home loan program

iBuyer startup Opendoor launching new home loan program
(Credit: iStock)

Despite housing market slowdown, mortgage lenders just had a great second quarter

Despite housing market slowdown, mortgage lenders just had a great second quarter
Donald Trump and Kathy Kraninger (Credit: Getty Images and iStock)

Trump proposal would make getting a mortgage harder for homeowners deep in debt

Trump proposal would make getting a mortgage harder for homeowners deep in debt
arrow_forward_ios

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

Loading...