Loan originators that have recently been displaced as a result of declining refinance production could find success in another sector of the mortgage industry.
Economists at Fannie Mae expect refinance originations to fall to $1.1 trillion this year from nearly $1.5 trillion in 2012. Next year’s refinances are projected to plummet to $0.6 trillion.
The loss of refinance business has prompted major lenders like Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. to lay off thousands of employees — with potentially thousands more job cuts ahead.
But one company sees opportunity in people with loan origination experience: Fay Servicing.
In May, the distressed servicer announced that it was looking to expand its servicing staff with experienced loan originators.
“We value candidates with a deep backgrounds in mortgage origination because they typically have a powerful combination of mortgage intelligence and interpersonal skills necessary to connect with distressed borrowers, enabling us to leverage stronger borrower relationships and reach optimal loan resolutions,” Fay Servicing Chief Executive Officer Ed Fay said at the time.
Now the Chicago-based company is taking its strategy one step further.
On Thursday, an announcement indicated that Fay Servicing has launched an initiative to create strategic partnerships with mortgage lenders to help train origination staff for a career in the servicing industry.
According to the news release, the program will provide training for key skills needed in dealing with distressed borrowers, These include managing initial calls from borrowers, refining listening skills and conducting a personal budget analysis. It also provides education about meeting all applicable compliance requirements.
“Fay Servicing has developed an employment model that seeks professionals with extensive mortgage expertise combined with borrower engagement skills, enabling them to successfully work with distressed homeowners to avoid foreclosure,” today’s announcement said. “Relationships with lenders that are downsizing origination staff allow the company to attract the next generation of special servicers.”
