T
o succeed in residential real estate, it's essential to think big and consider the industry as a whole. Industry Decoded features experts who provide valuable insights into issues affecting the mortgage sector. The views expressed here are solely those of the author.

    As someone who entered the mortgage industry at 19, I've witnessed firsthand the lack of young professionals in this field. According to a 2023 survey by MGIC, 55% of loan originators have over 21 years of experience, and 66% are aged 50 or older. This aging workforce poses an urgent challenge for the mortgage industry.

    The current model is unsustainable. Companies value experienced professionals but often lack infrastructure to train newcomers. Connor Bartley, National Recruiting Leader at Lower, notes that this reluctance to invest in training creates a feedback loop where only experienced professionals are hired, making it harder for young people to break into the industry.

    Cultural inertia also contributes to the problem. The mortgage sector has resisted change for decades, putting itself at a disadvantage. Ashley Yarabinec, Director of Member Relations at the Mortgage Bankers Association (MBA), emphasizes that embracing technology and younger professionals is crucial to stay competitive.

    Millennial and Gen Z homebuyers are increasingly entering the market, seeking mortgage professionals who understand their needs and preferences. The stakes are high, as a generational divide will only grow if the industry fails to innovate and evolve.

    The mortgage industry's recruitment struggles begin with its absence on college campuses. Brian Lavelle, a 22-year-old loan officer, notes that other industries are actively recruiting students, while the mortgage field is often overlooked. Beyond visibility, barriers to entry are high, and training is limited.

    To address these challenges, companies need to be proactive in recruiting young talent, offer structured programs for growth, and provide mentorship opportunities. The industry must also promote its human side, highlighting the purpose-driven careers that many younger workers seek.

    The consequence of doing nothing will be severe – a shrinking talent pool, lost institutional knowledge, and a diminished customer experience. It's time to act now and ensure not only the survival but also the growth and evolution of the mortgage industry.