Mortgage Hiring Outpaces Layoffs in Second Quarter

August 10, 2009 No Comments »

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Hiring at large mortgage firms outpaced layoffs during the second quarter of the year, according to an analysis conducted by MortgageDaily.com.

The publication said hiring outnumbered layoffs by more than 8,000, with 11,482 new employees brought in and 3,229 let go.

That compares to 8,877 new hires and 10,953 layoffs during the first quarter.

Mortgage layoffs were down about 71 percent from the first quarter and 31 percent compared to the second quarter of 2008.

“An increase in both delinquency and loan modifications has forced mortgage companies to boost their servicing staffs,” said MortgageDaily publisher Sam Garcia, in a press release. “In addition, record low mortgage rates helped drive up demand for production personnel.”

North Carolina, which is a banking hub in the United States, had the most mortgage-related layoffs at 700.

Hiring was strongest in Texas, with more than 1,100 mortgage jobs created.

By firm, mortgage lender JPMorgan Chase was the most active recruiter, bringing in 4,000 new employees during the period, probably related to their takeover of WaMu.

The layoffs and new hires tracked by MortgageDaily generally involve more than 50 employees, so it’s unknown how the smaller shops are faring.

With so many tiny mom-and-pop type mortgage companies throughout the country, the numbers are likely much worse than they actually appear.

It’s also unclear how long these new hires will last, given the fact that the mortgage refinance boom has already waned and loan modification demand won’t be around forever.

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