Let’s be truthful. The mortgage industry is one that, more often than not, eats its young. It is fair to say that too many mortgage lenders don’t do as well as businesses in other industries when it comes to developing future leaders from within. The landscape is changing tremendously, which will render many traditional approaches to sustainable profitability ineffective. This industry is going to need to start doing it better. And fast.
You’ve read all about the differences between baby boomers, Generation X, millennials and, now entering the labor pool, Generation Z. Some of those observations may be a bit overblown. But there are definitely differences in the way each segment sees work, employers and life in general.
It’s also undeniable that one of the largest generations is slowly starting to leave the industry as it ages. It doesn’t take a complicated algorithm or artificial intelligence to determine that lenders will need to replenish their teams with younger professionals sooner or later. While technology may help with that, empowering fewer people to get more done and do it more efficiently, there will always be some need for the human touch when it comes to mortgage lending.
That means that good mortgage businesses seeking sustainable success will need to adapt to the markedly different expectations of younger origination professionals. More importantly, they’ll need to figure out how to keep them.
For those who’d like to see their success and profitability last a long time, mentorship and development may be the most important element of all. The time to start developing the next generation of mortgage innovators and leaders is right now, no matter what the state of the market might be.
Contrasting expectations
The workforce is comprised of multiple generations. Each looks at work a little, or in some cases, a lot, differently. With those variances come differing expectations. Boomers and Gen X professionals often value stability, traditional hierarchies and face-to-face communication. In contrast, millennials and Gen Z tend to place a premium on flexibility, purpose-driven work and technological integration.
Millennials generally prioritize workplace culture and personal growth opportunities over salary alone. They seek environments where collaboration thrives and individual contributions are recognized. Meanwhile, Gen Z — now entering the workforce — typically values inclusivity and a strong commitment to social responsibility, expecting employers to take meaningful stands on societal issues.
How will the best lenders manage to attract the best from all of these generations? Flexible technology is a good place to start. Good tech- nology doesn’t just help eliminate the most redundant, menial and inefficient tasks and roles. It also makes mortgage professionals more effective and enables them to spend more time doing the things they do best.
Odds are good that you’ve heard a lot about and likely even have a level of flexibility in your workplace environment. That’s a good start. The newer generations, by and large, demand hybrid work models because of their priority on work-life balance.
Finally, purpose-driven recruitment will also become a staple for mortgage lenders that successfully recruit the top talent. Younger recruits, especially, tend to want roles and workplace cultures that align with their own ideals and values. Lenders that articulate visions that sound more like press releases or legal disclaimers should probably consider outsourcing their recruiting efforts or, better yet, revisiting their true missions.
Career paths
Successful recruitment, of course, is just one part of the formulas for achieving long-term success. Now, you need to keep and develop your best young producers and professionals. Here’s how forward-thinking lenders are addressing this issue.
Establish real and substantial mentorship programs. If you’re not significantly developing your own leaders, you’ll likely have to turn to the outside to fill those roles when your current generation of top executives is ready to move on. Bringing people in from other cultures and models can jeopardize the continuity of successful business models.
By pairing seasoned professionals with younger employees, mortgage businesses can drive the transfer of the knowledge and experience within your current model while making your youngest employees into seasoned mortgage veterans, easily able to handle the dips, curves and other complexities inherent to mortgage lending. Successful lenders are finding that these relationships not only enhance professional development but also build a sense of belonging and loyalty within the organization.
Next, lenders truly seeking effective development are providing continuous learning opportunities. This is an industry undergoing constant change, and the transformation seen over the past five years is only going to accelerate. Top lenders are investing in training programs that cover everything from regulatory updates to technological advancements They also support professional certifications and encourage employees to pursue further education, reinforcing a culture of lifelong learning.
Open communication is a must to retain and develop talent. Organizations that prioritize feedback — both giving and receiving — create environments where employees feel valued and heard. Regular check-ins, anonymous surveys and an openness to suggestions are ways to allow lenders to adapt while building satisfaction among employees. Of course, suggestions need to be acknowledged and, where appropriate, acted upon.
Finally, establish clear and achievable career paths. Younger workers are less likely to stay with a company that does not offer clear pathways for advancement. Successful lenders are now mapping out career development plans that align individual goals with organizational needs. By clearly defining the steps necessary for advancement, companies can help employees visualize their future within the organization, giving the professionals purpose as well as additional motivation.
Pressing question
The question of who will fill the leadership void as boomers leave is a very real one, and it’s on the doorstep right now. The businesses planning now for tomorrow’s success have put in place immediate recruitment and retention strategies. More importantly, they are also investing in the long-term development of future leaders.
This all starts by teaching your youngest professionals crucial leadership skills as early as day one. Some businesses are creating tailored training programs that prepare young professionals for management roles. These programs often include workshops, role-playing scenarios and real-world problem-solving exercises that build a culture of leadership.
Finally, and this is something many mortgage businesses desperately need to do better, this industry needs to encourage and foster, rather than squelch or ignore, innovation. Real estate is only now finally seeing the technological breakthroughs other industries experienced 15 years ago, and there’s still a lot of catching up to do.
Younger generations thrive in environments that value creativity and innovation. By fostering a culture where employees are encouraged to propose new ideas and challenge the status quo, lenders can inspire the next wave of leaders to think critically and develop their unique leadership styles.
The mortgage world has long been a world of recruitment when it comes to “staffing up” for success. That’s still an important ingredient. But if the personnel strategy starts and ends there, the cycle will repeat itself, which is a lot more costly than training from within.
Remember, there’s always another company out there recruiting the top producers for their next opportunity. Somewhere along the line, it’s crucial for the mortgage industry to develop its own leadership. The time to do that is right now.
