– Caldwell Partners whitepaper identifies crisis and possible industry solutions –
TORONTO, March 12, 2013 /CNW/ – “The mortgage banking industry stands at a turning point in terms of talent, and companies that don’t recognize the world has changed will likely be left behind,” says Carol Hartman, a partner in the Financial Services Practice at executive search firm Caldwell Partners and co-author of a new white paper, “Developing a new generation of mortgage banking leaders.”
“A shortage of mortgage banking executive talent has been building for a decade, but the financial crisis has left the industry without the leaders it needs for the next decade,” said Ms. Hartman
“In the last several years, we have seen regulation get more complex and capital requirements increase. To satisfy the higher levels of capitalization, some mortgage banks are going to the capital markets to raise money and many more may need to do so in the foreseeable future.”
Hartman added: “To succeed in this type of environment, mortgage banks need management teams to be complemented by executives who not only have credibility in the capital markets and with regulators, but also understand the entire mortgage banking ecosystem.”
“Unfortunately, these executives now find themselves being wooed by other companies in financial services that pay more or command more respect. Banks, hedge funds, private equity firms, law firms and accounting firms are also looking for senior-level executives who can operate in a more regulated environment.”
“The mortgage banking industry is in danger of losing the recruiting battle, based on recent experience in securing top-level talent for mortgage banks. The urgency of the issue is further complicated because the founders of successful firms are in unfamiliar terrain and are uncertain about hiring executives who are generally more risk averse.”
There are, however, several measures the mortgage banking industry can take to meet these challenges:
- Prioritize institutional experience.
- Increase the compensation to compete with hedge funds, law firms and accounting firms.
- Raise the level of professionalism in the mortgage banking industry.
- Align compensation to avoid functional conflicts-of-interest.
“The mortgage banking industry needs to move quickly to develop a new generation of leaders, especially in five key positions: general counsels, chief financial officers, chief risk officers, chief compliance officers and chief information officers.”
“Institutions that recognize the industry’s new dynamics can transform this challenge into an opportunity,” Ms. Hartman concluded.
To speak with Carol Hartman, or for a copy of “Developing a new generation of mortgage banking leaders” white paper, please contact Caroline Lomot at clomot@caldwellpartners.com or 516-830-3535.
Carol Hartman is a partner in Caldwell Partners’ financial services and financial officers practices, conducting senior level search assignments in the banking, asset management, private banking and wealth, risk, compliance and retirement income sectors.
About Caldwell Partners
Caldwell Partners is one of North America’s premier providers of executive search and has been for more than 40 years. As one of the region’s most trusted advisors in executive search, the firm has a sterling reputation built on successful searches for boards, chief and senior executives, and selected functional experts. With offices and partners across North America, and a strategic presence in London and Hong Kong, the firm takes pride in delivering an unmatched level of service and expertise to its clients.
The Caldwell Partners’ Common shares are listed on The Toronto Stock Exchange (TSX: CWL). Please visit our website at www.caldwell.com for further information.
SOURCE: The Caldwell Partners International Inc.
For further information:
Caroline Lomot
Caldwell Partners
clomot@caldwellpartners.com
+1 516 830 3535
