With more and more lenders offering signing bonuses to loan officers, it is clear that this trend is here to stay, albeit in a slightly diminished form.
The recent proliferation of signing bonuses has been an effective way for companies to entice loan officers to sign on with their company. By offering a lump sum payment to successful applicants, employers can quickly and easily sweeten the deal for potential new recruits. And while these bonuses have become an accepted part of the hiring process in the mortgage industry, it is worth noting that they have slowly been declining in size over the past few years.
With more lenders competing for the same pool of loan officers, signing bonuses have become smaller on average. This is due in part to lenders being more aware of their competitors’ offers; as such, they are less likely to offer larger one-off payments in order to secure a loan officer’s services.
In addition, the increasing complexity of the mortgage lending process means that lenders need to be more thorough in evaluating a loan officer’s skillset. Loan officers must now demonstrate a clear knowledge of the different regulations and processes involved in mortgage lending, as well as the technological systems used in the industry. As a result, signing bonuses are much more likely to go to those who can demonstrate a strong understanding of this side of the job.
All of these factors mean that loan officers should expect signing bonuses to remain an important part of the recruitment process, but that they are likely to be smaller than ever before. While this may be seen as an unwelcome development for some, for others it could be seen as a positive in that they will now need to prove their skill level to secure a bonus. Ultimately, lenders are seeking the best talent out there, and as such, they will continue to offer signing bonuses as a way to sway potential candidates.
This article was contributed on Dec 30, 2023
