Retail IMB Mortgage Loan Officer Tenure and Turnover Trends 2020-2024

This chart illustrates trends in Mortgage Loan Officer (MLO) tenure and turnover from 2020 to 2024 among retail independent mortgage banks (IMBs), using NMLS data for lenders that report HMDA. While the NMLS dataset includes some licensed individuals who may not actively originate loans, the metrics still provide meaningful insight into loan officer workforce dynamics across the industry (see blog for details).

Average MLO tenure remained relatively stable around 3.5–3.9 years. However, turnover surged dramatically from 22% in 2021 to 145% in 2023, a year defined by steep interest rate hikes and declining loan volume. The turnover metric - defined as total terminations divided by average annual tenure -surpassing 100% suggests a rapid and concentrated contraction in employment, either through mass layoffs or a churn-heavy staffing model. In 2024, turnover sharply declined to 32%, but tenure did not change.

For retail IMBs, these metrics offer an early-warning signal for operational risk, sales capacity gaps, and organizational resilience in volatile markets. Poaching top talent is currently harder and more expensive. On average, experienced MLOs are staying put. Recruitment efforts should focus on value proposition and platform stability rather than just signing bonuses, which are less effective on tenured, risk-averse producers.