BAM Key Details:
- Sixty percent of mortgage professionals are living paycheck to paycheck according to the 2023 Mortgage Industry Commission & Retention Report, based on a survey conducted by Everee.
- Over 31% of the 314 survey respondents plan to leave the industry in the next year, while 15% remain uncertain about their future as mortgage professionals.
Given how important it is for real estate agents to be having daily conversations with multiple lenders in their area, it makes sense to look at what could drive more of them out of the industry.
The 2023 Mortgage Industry Commission & Retention Report details the survey results from 314 U.S.-based mortgage professionals with commission-based roles.
And the news is not great.
Mortgage pros are leaving for greener pastures
Over 31% of the survey respondents plan to leave the mortgage industry within the next 12 months, while another 15% are uncertain about their future as mortgage professionals.
According to the Everee survey, the top three factors contributing to the retention and overall satisfaction of mortgage professionals are—
- Competitive pay
- Faster commission payments
- Flexible working options
You’d think with today’s real-time, on-demand climate, commission-based professionals would receive payment within a reasonably short timeframe. But over 60% of mortgage professionals have to wait at least two weeks to receive their commissions. Nearly a quarter (22.3%) wait a month. And more than one in ten (11.5%) wait even longer.
That might not sound like a big deal for those who regularly get paid every two to four weeks, but if you’re living paycheck to paycheck, an extra day’s wait can impact your ability to pay your bills or buy groceries, especially if your last payment wasn’t nearly enough to get you ahead of your financial obligations.
And as any freelancer or agent can tell you, having to wait an extra week or more to get paid can shorten a person’s lifespan.
Here are a few more findings from the survey:
- 72.6% of respondents would choose to work for one company over another based solely on their faster commission payments.
- 65% want payment in a week or less, but only 40% get paid that quickly.
Looking specifically at loan officers…
- 38.5% are not happy with how quickly they get paid.
- 82.2% would be more likely to keep working for their current employer if they received their commission payments within 24 hours.
We’re seeing that mortgage professionals consider the speed of pay to be more important than things like company culture, health benefits, and retirement benefits when deciding where to work. When considering that so many of these professionals are living paycheck to paycheck or wanting to leave the industry, we are committed to working with mortgage companies to pay commissions to employees as fast as the same day they close a deal. By doing so, we’re giving these employees an opportunity to better support their financial needs, and we’re also helping businesses increase retention, protect margins, and attract new talent.
Read the full report for more details.
Takeaways for real estate agents
Mortgage professionals committed to having these daily conversations are more likely to see an increase in their number of home purchase deals, which translates into more frequent payments.
That said, a more streamlined payment process for mortgage professionals could go a long way.