“Pressure is mounting at the mortgage banking divisions of the biggest US banks.

“As refinancing activity has plummeted, banks are trying to step up new home loans, in an attempt to offset the dramatic revenue drag on overall bank earnings. There are few easy ways to boost new purchase originations, but one of the starkest battles is playing out in the bidding war for hotshot mortgage loan officers.

“People are fighting over a smaller pie,” said Franklin Codel, head of mortgage production at Wells Fargo, the biggest US home lender. “The competition for quality loan officers is very high.”

“Thousands of job cuts in the mortgage divisions of US banks – many of which came in the refinancing call centres – have overshadowed the intense competition for experienced mortgage brokers with existing client relationships.”

***

Read full Financial Times article here