The Next Generation of Mortgage Leaders is Coming: John Cady from Citywide Home Mortgage

John Cady is CEO and President of Citywide Home Mortgage

The mortgage industry is no stranger to change, although we’ve often been averse to it. From evolving regulations to changing markets, adaptability has always been key to our success. However, one of the most significant shifts in recent years isn’t about interest rates or lending guidelines—it’s about people. Specifically, how lenders recruit, retain, and develop talent for leadership roles in a rapidly changing workplace. In other words, how we prepare our successors for sustainable success.

And yet, for some reason, the mortgage industry has long chosen to stunt its own growth by eating its young, rather than developing our next generation of leadership. In the course of doing so, we’ve all too often stymied the innovation and creativity the space has been dying for more of. So it stands to reason that the task of preparing the next generation is more urgent than ever. But this isn’t as simple as simply handing over the reins. After all, far too many have already tried that, and with disastrous results in many cases.

It’s also not just a matter of shaping our younger executives to be new versions of the current generation. That doesn’t work either. At this moment, we face a market the likes of which we haven’t seen before. How 2025 will do is anything but certain or easily predicted. How we originate and produce is different. How we serve clients is different. And how we employ our technology and resources is different, too. In fact, the change engulfing the mortgage industry is, in many ways, only accelerating.

The same goes for the next generation, for whom expectations around work, leadership, and career paths have transformed. The incoming wave of new leadership tends to have priorities that differ from those of the previous generations. All of this means it’s time for a fresh approach to building a strong leadership pipeline.

Recruiting Beyond the Resume

Finding the right talent starts with understanding that today’s candidates are looking for more than just a paycheck. Yes, they desire compensation that rewards their contributions. That’s not going away any time soon. But, in addition to that, younger professionals entering the mortgage industry, budding top producers and young executives all want to know that their work matters. They’re drawn to companies that demonstrate a commitment to meaningful work, professional growth, and ethical practices. They want companies with a clear and clearly communicated plan for continued success. They demand empowerment and a direct connection to the results they bring.

Lenders that stand out in recruitment often go beyond traditional job postings. They actively engage with their communities, whether through partnerships with local universities, participation in job fairs, or offering internships that provide a true taste of the industry. They also maintain a broad and robust network throughout the industry. Transparency about career paths within the company—and the industry as a whole—is another critical factor. Candidates want to see not just a job, but a future. That’s true as well with the fast rising stars. Producers and operators alike seek positions and lenders insist upon a transparent career path, as well as the resources to grow into that.

Retention: It’s About More Than Perks

Once you’ve brought the right people on board, keeping them engaged is a different challenge altogether. While competitive compensation packages remain important, they’re not the only factor in retaining talent. Employees are increasingly focused on work-life balance, flexibility, and a sense of purpose in their roles. They also need the means to create the desired results. It’s easy to tell someone to “run through a wall” or give “110 percent.” In fact, in many cases, that’s downright lazy leadership. It’s another to give that professional access to tools and the empowerment to make decisions in order to achieve what you (and they) are looking for.

Clear communication is essential. Employees need to understand how their work contributes to the broader goals of the organization. Regular check-ins, feedback sessions, and opportunities for employees to voice their ideas or concerns go a long way in fostering a sense of belonging.

Not everything has to be a group discussion, either. There are absolutely times when a leader needs to effect a difficult or unpopular decision for the betterment of the company. It’s imperative that during those times especially, management explains clearly what it can about the decision, rather than simply distributing vague platitudes and buzzwords, then disingenuously inviting anyone seeking further clarification “to approach us.” Lenders that regularly engage in this practice are the best recruiters…for their competitors.

Creating a culture of mentorship is another proven strategy for retention. Pairing newer employees with experienced team members not only helps them learn the ropes but also gives them a sense of connection within the organization. When employees feel invested in—both personally and professionally—they’re far more likely to stay.

Developing Leadership From Day One

Leadership development isn’t something that starts when an employee reaches middle management. The most successful mortgage lenders begin grooming leaders from day one. This means identifying potential early and offering opportunities for growth, whether through professional development programs, cross-training, or stretch assignments that push employees to expand their skill sets.

A focus on leadership development also means recognizing that leadership styles are changing. The command-and-control approach that worked in the past is less effective with today’s workforce. Empathy, collaboration, and adaptability are increasingly seen as core leadership traits. Training programs should reflect these priorities, helping future leaders build the skills they’ll need to succeed. And, again, effective, useable and accessible tools such as technology, data and support, go a long way toward helping employees bring about optimal and long term results.

Embracing Generational Differences

One of the biggest hurdles in preparing tomorrow’s leaders is bridging the gap between generations. Baby Boomers, Gen Xers, Millennials, and Gen Z each bring their own perspectives to the table—and their own expectations about work.

For example, Millennials and Gen Z tend to value feedback and collaboration more than previous generations. They’re also more likely to prioritize work-life balance and social responsibility. On the other hand, many are still building the industry experience that older employees bring. An astounding number of top mortgage professionals are just now getting their first taste of a market that isn’t refinance dominated. The challenge for mortgage lenders is to create an environment where each generation’s strengths complement each other rather than clash.

This often starts with listening. Leaders who take the time to understand what motivates their employees—regardless of age—are better equipped to create a workplace where everyone can thrive. Building cross-generational teams, encouraging open communication, and fostering mutual respect are critical steps in this process.

The Road Ahead

The mortgage industry is at a crossroads. As seasoned leaders prepare to step back, the task of nurturing the next generation has never been more important. It’s not just about filling positions—it’s about ensuring sustainable success and a viable next generation of leadership and innovation.

By focusing on meaningful recruitment strategies, prioritizing retention through connection and growth, and investing in leadership development from the start, lenders can build a pipeline of talent ready to meet the challenges of tomorrow. The next generation of mortgage leaders is coming. The question is: Are we ready for them?

(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)