“After job cuts in 2023, and with lenders generally less pessimistic about the economy and the direction of the mortgage market, staff sizes appear to be normalizing,” Fannie Mae chief economist Doug Duncan said in the MLSS report. “Some shared plans to increase their workforce this year and many remain focused on talent management.”
Lenders’ outlook on the economy has improved since last year. In the latest survey, 66% expect a recession over the next two years, down from 93% in 2023. Despite this, concerns about low housing supply and higher mortgage rates persist.
The priorities for 2024 mark a shift from previous years. Cost-cutting, a top-three concern since 2022, remains crucial. However, talent management has now taken the lead, emphasizing the importance of recruiting and retaining skilled personnel. This focus on talent management has pushed consumer-facing technology out of the top three priorities for the first time since 2017.
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“Mortgage origination volumes declined significantly as interest rates rose over the last couple of years,” Duncan noted. “This contributed to compressed profit margins for lenders and layoffs across the industry. Employment levels in the mortgage industry are at their lowest since 2014.
Source: mpamag.com