I read this article and thought it was interesting. Times are tough for everybody in this industry. Notaries are at the tail end of the transactions so as profits get smaller our compensation will also follow the same. Many Notaries are leaving because they, like the loan officers were loving the boom during the pandemic and now are forced to make some life changing decisions.
Yesterday I saw an offer for $60 for a Refinance package and it was snapped up by a Notary from a company who exactly a year ago would have offered $100. SS and TC are feeling the pain also. They have expenses also so I’m personally not mad…disappointed yes…but not mad. Its just the nature of the business we are in and its a cycle we are going through. If you’ve built your business correctly you can ride this wave out. If not you may want to grab a life jacket or a paddle as a huge wave is about to hit us all.
Lower compensation is likely in all scenarios
Even if those recently laid off stay in the mortgage industry, the pay scale is likely to drop.
“The average retail loan officer last year made $218,000,” Hrobon said. “And as long as their business was at least more than 50% purchase business and they’re willing to take some level of pay cut they’ll probably have a home still in this industry.”
Loan officers used to get paid 50 basis points on average loan size of maybe $80,000 back in 1982. Now they’re averaging about 115 basis points on an average loan size that’s approaching $400,000, he noted. That is not sustainable as margins shrink.
It was during the build-up of staff during the pandemic boom that, for the first time in her career, Schilling heard of loan processors getting sign-up bonuses.
“And today, some of the people who made these in the last few years are the ones that we are seeing being laid off,” she said.
Reed’s recruitment included a bidding war between Consolidated Analytics and another firm. The day before he was let go, Reed said he received a positive performance review from his supervisor. The following morning, the person who did the review informed him he was being let go.