MSA in the Newshttp://www.msarecruiting.comSun, 05 Sep 2010 11:06:58 GMTExecutive Sees Opportunities for Certain Loan Originatorshttp://www.msarecruiting.com/executive-sees-opportunities-for-certain-loan-originatorsMon, 02 Mar 2009 16:59:37 GMTBonnie Sinnock Interest in recruiting originators remains relatively strong in today's challenging market when it comes to those with Federal Housing Administration expertise who can be a source of large volumes in particular regions.
For example, mid-level Midwestern production opportunities continue to exist and are likely to remain in demand, said Tami Coffey, president of Mortgage Search and Acquisition, Dallas. Other examples of markets "everybody feels pretty good about" include the Carolinas and major metropolitan areas like Kansas City, St. Louis and Austin, Dallas and Houston, Texas, said Ms. Coffey, whose business supports recruiting and acquisitions in retail and wholesale residential mortgage operations, sales and management.

In contrast to the aforementioned regional markets, lenders are "extremely wary" of once-hot areas like New York and California where the combination of large loan sizes, depreciating property values and tight underwriting standards have created particularly high hurdles for origination operations.

Generally, a branch and its originators must produce at least $50 million to $80 million per year to be worth a recruiter or acquirer's interest, Ms. Coffey said. In some cases acquirers will not be interested unless a branch originates at least $100 million annually, she said.

Product type and related experience also has become a key consideration in recruiting, with most of Ms. Coffey's clients seeking "purely FHA experience" whether they are looking for wholesale or retail originators, she said.
Recruiting considerations are seen as a key part of the value of acquisitions, she said. "Companies I work with won't look at a company unless its management team stays in place. FHA is really what everybody is looking for."
The profile of acquiring companies has shifted to hedge funds and private equity firms from large financial services companies, Ms. Coffey said.

While there has been much discussion of the mortgage industry's personnel shortage in the servicing area, Ms. Coffey said there is more demand for recruiting expertise on the origination side because production positions are "a little tougher" to size up. "It's pretty easy to quantify [servicing skills]," she said, adding that gauging production expertise is "more complicated." Secondary marketing professionals also have found it relatively easy to find new mortgage market opportunities, Ms. Coffey said.

A lot of originators have been "switching gears" and moving from wholesale to retail originations to keep up with the changing recruiting needs in the mortgage market but despite the great unmet need for servicing staff, she has found few origination professionals move into or are recruited for those positions. Moves from retail or wholesale underwriting to risk management or distressed asset positions are "rare," Ms. Coffey said.

Mortgage Search and Acquisition generally works as a 100% retained firm and generally does little negotiating as far as its terms with clients, she said. "We can be flexible when we have to be," said Ms. Coffey. The company has gotten many inquiries from mortgage professionals seeking positions and is open to contact regarding these, primarily through its website, she said. But Ms. Coffey suggests keeping in mind that a candidate must have a "value proposition" for her clients.

]]>http://www.msarecruiting.com/executive-sees-opportunities-for-certain-loan-originatorsCalling in a Search Teamhttp://www.msarecruiting.com/calling-in-a-search-teamTue, 03 Mar 2009 15:56:53 GMTMelanie ScarboroughClick the link below to download the PDF

Mortgage_Search_Acquisition.pdf

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