Refinancings, Reverse Mortgages Cost Mortgage Jobs

Written by: Steve Cook   Mon, April 11, 2011 Beyond Today's News


Mortgage sector jobs went from a net gain in 2009 to a net loss last year, though the drop was far from the 90,000 mortgage workers who lost their jobs in 2007.

 At at time when complaints about mortgage processing times are increasing, layoffs outpaced new hires by 3100 jobs in 2010, according to an annual survey by Mortgage, an online news publication for the mortgage industry. Some 10,300 jobs were filled, but 13,400 workers were laid off.  In 2009, hirings exceeded layoffs by more than 8,000.

 The deterioration between 2009 and 2010 was the result of a steep drop off in recruiting; more than 30,000 jobs were added in 2009 largely to help a growing number of delinquent borrowers rework or modify loans. 

 Last year, recruiting fell by two-thirds.  Most of last year’s losses occurred in the final quarter as a result of falling refinances.

 The net loss in California exceeded a thousand — more than any other state. But Texas had a net gain of more than 600 — better than any other state.

 JPMorgan Chase & Co. had the biggest employment gain of any lender.  Wells Fargo, on the other hand, had the greatest losses.  Many of the impacted employees were interim workers temporarily hired to handle increased refinance volume.

 Layoffs are continuing into 2011, with Wells Fargo having already disclosed nearly 2,500 first-quarter 2011 mortgage layoffs. In addition, three major lenders have closed reverse mortgage businesses.

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