For the past six years, mortgage delinquencies, often a result of homeowners losing their jobs, created employment among mortgage servicers who process delinquencies and defaults. Now the shoe is on the other foot as declining numbers of delinquencies are costing lenders jobs.
Declining delinquency drove mortgage servicers to reduce headcount in the second quarter. The biggest casualties were suffered by the nation’s largest servicers, while up-and-coming servicers added to their payrolls. Preliminary data for the current and upcoming quarters indicate the pain will deepen
There were 2,981 more mortgage layoffs than hirings during the three months ended June 30, according to the Second Quarter 2013 Mortgage Employment Index from Mortgage Daily.
The index reflects mortgage-related hirings and layoffs tracked by Mortgage Daily and is based on public company reports, state government employment data and quarterly surveys conducted by Mortgage Daily.
The second quarter net job loss in real estate finance contrasted the first quarter, when the industry had net gain of 5,129 jobs — the biggest expansion in nearly four years.
In the second quarter, mortgage lenders reported 9,950 layoffs — the highest level of layoffs since the first-quarter 2009, when mortgage firms laid off 10,953 employees. In the second quarter of last year, industry-wide staffing grew by 1,335 positions.
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