Mortgage Job Losses Slow in Latest Quarter

January 21, 2009 No Comments »

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While many industries still face massive layoffs, mortgage-related job losses seemed to have eased, according to employment data tracked by MortgageDaily.com.

There were a total of 8,646 mortgage industry layoffs during the fourth quarter of 2008, down from 11,229 a quarter earlier.

The net job loss was 7,721, thanks to 925 new hirings, potentially related to the recent surge in mortgage business attributable to the record low interest rates floating around at the moment.

That’s down from a net job loss of 10,233 in the third quarter and 16,711 in the fourth quarter of 2007.

For all of 2008, net job losses totaled 36,737, down more than half from the 87,131 seen in all of 2007.

“As job losses worsened in other sectors, mortgage job losses began to ease,” said MortgageDaily.com Publisher Sam Garcia, in a release. “Federal Reserve purchases of mortgage-backed securities have recently pushed mortgage rates to record lows — fueling refinance demand.”

“In addition to an increase in the number of mortgage firms hiring, we have reported on at least one temporary employment agency seeking to fill thousands of positions.”

The great state of California led the nation in both annual mortgage job losses and losses during the latest quarter.

But nearly 2,500 losses at ResCap made it the biggest loser during the quarter, followed by JPMorgan Chase and its subsidiaries, and Citigroup.

While the news seems positive, countless numbers of mom and pop shops have likely closed under the radar, costing thousands across the nation their jobs.

(photo: thisisbossi)

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