“When wage growth crimps, borrowers tend to
save more and spend less — that includes
spending less on housing.”
Zillow shows that homebuyers have
9 percent fewer home options to choose
from than they did a year ago. Of the
ones available, most are high-priced.
American unemployment has dipped
to historic lows, but wages overall
remain stagnant. On the heels of a sus-
pected uptick in wages earlier this year,
average earnings fell by 0.1 percent
between March and April, knocking
down theories that wage growth was
beginning to firm up. When the la-
bor force experiences healthy wage
growth, it ignites the housing market
because financial wherewithal is greater.
Simply, borrowers can afford more house.
When wage growth crimps, borrowers
tend to save more and spend less — that
includes spending less on housing.
It will take unrelenting courage to lead
mortgage companies and loan originators through this choppy terrain. Leaders
will have to be brave enough to change
the way they’ve been doing business so
they can adapt to all these shifts.
No one wants to work for a leader who
keeps secrets, has trouble with honesty
or hides from conflict or tough conversations. Because their ability to earn
a living is directly tied to how much
volume they sell, originators aren’t
interested in listening to empty rhetoric,
and they’re good at sniffing out false
promises and insincere talk. Their livelihoods are at stake.
They prefer leaders who are straight
shooters. Honest. Candid. They want to
know the truth about what’s happening in the industry and how it affects
their organization. They want to chart
their career paths and need to rely on
leaders who commit to open and honest dialogue.
Honing these qualities takes time,
and time is a major investment that
many in the mortgage space feel they
can’t afford to make. After all, who can
focus on sharpening leadership skills
when faced with having to produce
business in a contracting industry?
Leaders don’t just happen. They
need to be developed at all levels of an
enterprise. And there are organizations
that offer training programs, including
major trade associations and private
companies with mortgage-training expertise. The available programs use a
variety of teaching methods, including
web-based lessons, in-person classes,
seminars and tutorials aimed at developing and improving leadership, sales
and management skills. The point is,
there are options.
Now, the takeaway: Good leadership is
paramount to the survival of our industry. And leadership of that caliber can’t
be encumbered by frills, false promises or cowardice. High signing bonuses,
car leases and other extravagant perks
are nice. Still, they’ll never beat a leader
who is candid, strategic and courageous.
Those are the types of leaders your team
members will follow. n
<< Leaders continued from Page 70