Nonprime Growth Requires Leaders with the Right Stuff.

Mr. Glass is managing partner, R.T. Glass & Associates, Sacramento, Calif. Mr. Glass has served the mortgage banking industry since 1983. Before opening his own firm, specializing in nonprime executive search, his previous practice led the nation's largest executive search firm.

Participating in the tremendous growth of nonprime lending will require companies in this sector to develop a deeper bench of high-caliber leadership. Nonprime companies need the right human capital to maximize their company's unique culture; to motivate and mentor employees who will enhance and optimize their employer's platforms. These skills can bring the higher performance results necessary to remain competitive in this changing market.

Although well intending, many companies introduce significant risk into their selection of executive talent.

Some companies rely on leaders still deeply rooted in the old finance company mentality, but finance companies no longer dominate nonprime lending. That leadership style no longer applies. Other companies short-circuit their talent acquisition through the selection path of least resistance; hiring individuals "they have known in the past," who are most likely not the high caliber performers in today's market. Still others are focused on function over performance.

This landscape, while firmly rooted in credit basics, has dramatically expanded over the past few years requiring broader resources and sophistication. With nonprime sales roaring, human capital issues are particularly important. Final tallies for 2004 show a whopping 55% increase in nonprime lending production, to some $608 billion - a nearly one-quarter share of the total residential market.

In this fast-growth and highly competitive environment, nonprime lenders require aggressive, targeted approaches to talent acquisition with well-oiled succession plans, in order to raise the performance bar. The industry leaders recognize high performance talent, those individuals who have made a practice of going "the extra mile," providing the stimulating challenges to attract and retain these individuals. Senior leadership inspires these individuals to drive greater performance and participate in the future success of the organization.

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