?> Aggressive Mortgage Recruiting - "Just Business" or "Bad Business"?
Top of Mind Networks

Aggressive Mortgage Recruiting – Just Business or Bad Business?

So there’s a local Atlanta-based lender who’s been aggressively poaching loan officers from competitors over the past year-plus. †They have an in-house recruiter who allegedly uses fear tactics such as “brokers are going out of business, you need to jump ship NOW” and other one-liners to drum up new loan officers.

To this company’s credit, they’re growing. †But the purpose of this article is to ask:

At what cost?

There are a few different ways to look at this questionable practice:

1) †Game On

One could argue that it’s the responsibility of the employer to loyalize his loan officers by offering a competitive product. †Let’s assume†we’re talking about a fair compensation package, access to competitive programs at good rates, streamlined operations and a positive working environment. †If the employer doesn’t have these items in place, they’re putting themselves at risk, and have nobody to blame but themselves.

2) †Dirty Pool

The other way to analyze the situation is to apply the “Golden Rule”. †How do you feel as an employer when your employees are constantly – and aggressively – being poached by a local competitor? †Here’s another way of looking at it: †what if some dude had the hots for your wife and called your house once/week asking her out – knowing full well she’s married? †Nothing illegal about that, right? †But it’s about as scummy as it gets.

As you can probably tell, I think the practice is tasteless and borderline unethical. †But make no mistake, it’s proving to be profitable for the lender I’m writing about today. †At least, profitable for now. †I think it’s going to be very interesting to see how this story ends. †But in the meantime, what’s your take?

February 20, 2010 by · Leave a Comment

About Mark

Mark is President of Top of Mind Networks, specializing in turn-key CRM solutions for mortgage professionals.

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No Responses to “Aggressive Mortgage Recruiting – Just Business or Bad Business?”
  1. Mark,

    Good points, and that type of recruitment would raise concerns about whether that company would be a good fit for me. If someone is using fear and pressure to recruit – can you imagine what they would be like once you have joined the company?

  2. I tend to agree that poaching of any sort is generally a bad idea. However, just to play Devil’s Advocate:

    Doesn’t a company owe it’s customers a duty to have the best possible providers of their services? A company wants to give its customers the best service and the most competent and capable officers that they can. There are industry guidelines in place in most industries, and if these guidelines do not address the ethical concerns of poaching, then the silence surely indicates consent to the practice. Should the industry as a whole decide that the practices are unethical and should not be tolerated, that’s one thing. However, if they don’t, a company would almost be irresponsible not to aggressively recruit the best officers they can.

    Again, not picking sides, just offering up a different argument.

  3. David Orsini says:

    I think a good analogy is to compare this to dating. Is it against the law to have an affair with someone elseís girlfriend/wife? Of course not. And donít you owe it to yourself to be with the most attractive person you can find, regardless of their involvement with another person? I think the overall point here is that just because it isnít illegal or against industry regulations doesnít mean you should do it, it is still bad business. And in this case I have no doubt it will come back around to bite this particular company in the butt.

  4. John Osslund says:

    Mark,
    Interesting thoughts. Let me take David’s analogy a bit farther. It is my job as a husband that I’m so terrific, that weekly call is laughed off. Frankly, I have had several of my top producing loan officers approached by one of the majors. I encourage them to go on the interview, and then, I’m clear that I would not want them to leave, just that, I want them to know what their options are. If the company culture, product and compensation are equal or to the competitors, most often the loan officer will stay. If not, then, it’s not a good match, and frankly I want each of my team to thrive. I happen to think this is the best company for them, but, if they do not share my thoughts, then, well, God Bless them as they move through their journey.

    I would say that any company that would take the scare tactic approach, will not recruit staff that will have long term success. That is a culture built to fail, not last, as Jim Collins would say. Frankly, my attitude is, bring it on. By the time I’m done speaking with the recruiter, he’d probably be working for me!

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