The mortgage industry has seen a shift in the way agents are recruited by competitors. While in the past recruiting agents relied on financial incentives, companies are now reducing the amount of these incentives. This approach has created a “race to the bottom” environment where companies are competing on the value-add and support services they offer to agents. This shift will drive convergence of these traditional brokerages in order to meet the current demands.

CEO Robert Reffkin has recently commented on this shift and its effect on the industry. By reducing the financial incentives used to recruit Compass agents, companies have set off a domino effect in the industry. These incentives alone have proven to be insufficient and other methods for recruiting a strong workforce must be used. Companies are now turning to support and value-add services as an alternative solution for gaining new agents. These services provide continuous assistance and make the whole recruitment process more attractive to potential agents. Overall, this shift will impact and alter the traditional brokerages and the methods used by mortgage companies to recruit agents.

Main Points:
– Companies are reducing their financial incentives for recruiting agents
– This shift has caused a “race to the bottom” in the mortgage industry
– Companies have started turning to support and value-add services to recruit agents
– This shift will alter the traditional brokerages and the methods mortgage companies use to recruit agents.

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