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?