More Than 9,000 Mortgage Layoffs in Third Quarter

October 6, 2008 No Comments »

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Mortgage industry layoffs doubled from the second quarter to the third quarter, but still remained well below the massive number of layoffs seen during the same period a year earlier, MortgageDaily.com reported today.

During the July 1 to September 30 quarter, a total of 10,131 mortgage industry employees lost their jobs, while 996 were reported to be hired.

The net job loss during the quarter was -9,135, up from a revised second quarter total of -4,578, but nowhere close to the 49,451 jobs lost in the third quarter of 2007.

California led the nation in layoffs, with 1,914 reported, followed by New Jersey with 495, Pennsylvania with 266, Illinois with 245, and Iowa with 190.

By mortgage lender, ResCap was hit the hardest, seeing 3,239 employees laid off during the quarter, followed by Indymac Bank with 3,050, Wachovia with 625, Mid Atlantic Capital with 600, and Carteret Mortgage with 400.

The report doesn’t include a number of recently announced layoffs, including layoffs as a result of the Countrywide and Bank of America merger, Wachovia mortgage-related layoffs, and any layoffs resulting from the WaMu bank failure.

Additionally, MortgageDaily generally only tracks layoffs exceeding 50 employees, so scores of layoffs at small mortgage broker shops across the country, while likely substantial, probably go unnoticed.

And then there are those employees who are simply forced to walk away from the job, as dismal conditions have made necessary.

The only real winner in the mortgage space over the past few months has been HUD, who indicated it would add 300 jobs to meet the growing demand for FHA loans.

Check out the latest mortgage layoffs, closures and mergers.

(photo: andyjakeman)

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