The mortgage industry has an age problem
A lack of investment in training or recruitment has led to an aging workforce — and an existential crisis for the industry. Where are tomorrow's loan officers?
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The views expressed in this column are solely those of the author.
When I was 19, I got my first job in the mortgage industry. It was at a small mortgage brokerage in Brooklyn, New York — my hometown — and I was, by far, the youngest person in the office. As my career progressed into leadership roles over the next 25 years, that remained a consistent theme.
Why weren't more young people coming into the industry?
An aging industry
According to a 2023 survey by MGIC, 55% of loan originators have over 21 years of experience, and 66% are aged 50 or older.
While experience is an asset, especially in a field that rewards expertise and relationship-building, what happens when these LOs retire? Who will fill their shoes?
This question isn't rhetorical — it's an urgent challenge for the mortgage industry. Few young professionals are entering the field, and the workforce is rapidly aging. As younger buyers enter the market, the industry's failure to adapt could lead to stagnation, lost opportunities and a diminishing ability to serve its customers.
An unsustainable model
While the industry values seasoned professionals, it hasn't created pathways to develop them. "Many companies want experience, but the truth is, we don't always have the infrastructure to train people new to the business. It's a complicated, nuanced field," said Connor Bartley, National Recruiting Leader at Lower.
This reluctance to invest in training has created a feedback loop where only experienced professionals are hired, making it even harder for young people to break into the industry.
Old methods are a mismatch for younger generations
The problem is compounded by cultural inertia. For decades, the industry has resisted change, putting the mortgage sector at a disadvantage.
Ashley Yarabinec, Director of Member Relations at the Mortgage Bankers Association (MBA), noted that her generation knows how to use technology effectively, "but if the industry doesn't embrace that and bring in younger professionals, they'll fall behind."
The stakes couldn't be higher. Millennial and Gen Z homebuyers are increasingly entering the market, and they want to work with mortgage professionals who understand their needs and preferences. "How does the loan officer reflect the demographic of the buyer? That's important," Bartley said.
This generational divide will only grow if the industry fails to innovate and evolve.
How we got here
The mortgage industry's recruitment struggles begin with its absence on college campuses. Brian Lavelle, a 22-year-old loan officer, recounted his experience when he was an undergrad: "These other industries are showing up, but the mortgage field doesn't even register. It's a missed opportunity to attract hungry young talent," he said.
Beyond a lack of visibility, the barriers to entry are high, and training is limited. "We can't just put someone straight out of college into a commission-only role and expect them to succeed," Bartley emphasized. "They need a pathway, a nurturing environment to learn the ropes."
Yarabinec echoed that sentiment, noting that some companies have begun developing programs for newcomers: "It starts at the top with company culture and a commitment to nurturing the next wave of professionals," she said.
There's also a perception problem. The role of a loan officer is often seen as primarily transactional — a far cry from the purpose-driven careers that many younger workers seek. "We need to show them that this career isn't just about sales — it's about making a meaningful impact on people's lives," Lavelle said.
The consequence of doing nothing
"If companies don't plan for leadership succession and invest in young talent, they're not just losing employees—they're losing the future," warned Yarabinec.
Why? For one, the talent pool is shrinking. As older loan officers retire, their institutional knowledge leaves with them, creating a void that can't be filled overnight. This also threatens the customer experience. Younger homebuyers, who are accustomed to digital-first interactions and peer-to-peer engagement, may simply disengage.
"We're not connecting with my generation and the one coming after," Lavelle said. "They'll Google something before trusting a professional. If we don't learn to speak their language and provide real value, they'll look elsewhere," he added.
The time to act is now
The problems are real — but the solutions are within reach. They require commitment and action to ensure not only the survival of the mortgage industry, but also its growth and evolution.
Visibility: Companies need to be actively recruiting on college campuses, participating in job fairs, and creating internship opportunities that introduce students to the industry.
Flexibility: "Rather than just focusing on commission-driven roles, offer structured programs where young professionals can learn and grow," Bartley suggested. This could include salaried positions with clear paths to advancement.
Mentorship: Yarabinec's work with the MBA's mPact program is a prime example of how mentorship can make a difference. "We're creating spaces for young professionals to learn, network, and find mentors who can guide them through the industry," she said.
Purpose: The mortgage industry must promote its human side. "Buying a home is one of the biggest decisions in someone's life," Lavelle said. "As loan officers, we guide them through that process, and at the end of it, their dream comes true. That's what makes this career so rewarding."
The mortgage industry has always been about helping families achieve homeownership and creating opportunities for communities to thrive. But that mission is at risk if we don't confront the challenges ahead.
Bartley remains optimistic: "Loan officers are some of the most resilient people I've met. If we make the effort to recruit and train the right way, there's no limit to what we can achieve."
The time to act is now. Tomorrow's loan officers are out there. It's up to us to show them the way.
Coby Hakalir has been a leader in the mortgage industry for almost three decades. He currently leads the mortgage banking and mortgage tech division for T3 Sixty, one of real estate's leading management consultancies, and resides in Northern California. (Note: T3 Sixty founder Stefan Swanepoel also founded Real Estate News.)