Mortgage Layoffs Fall Fifty Percent in Second Quarter

July 8, 2008 No Comments »

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Mortgage industry layoffs fell by more than 50 percent in the second quarter compared to the first quarter and year prior, according to data tracked by Mortgage Daily.

The mortgage publication noted that 5,889 layoffs took place between April 1 and June 30, down from 14,405 layoffs in the first quarter of 2008 and 12,752 in the second quarter of 2007.

During the most recent quarter, 100 new jobs were created, putting the net job loss at 5,789.

The state of Washington led the nation in mortgage layoffs with a total of 2,000, followed by California with 542, Florida with 244, Pennsylvania with 217, and Michigan with 125.

By company, WaMu was hit worst with 4,000 job cuts, followed by Accredited Home Lenders with 700 layoffs, Wilmington Finance with 335 cuts, Quicken Loans with 250, and Citi’s First Collateral Services with 142.

MortgageDaily.com publisher Sam Garcia noted that layoffs have fallen sequentially since the third quarter of 2007 when a whopping 50,000 employees were let go.

He added that some areas of the beaten-down industry experienced recent growth, including FHA lending, reverse mortgage lending, and back-office operations like loss mitigation and loan servicing.

The layoffs and hirings tracked by MortgageDaily.com typically involve at least 50 employees, which clearly leaves many lost jobs unaccounted for.

The data also doesn’t include planned layoffs by Bank of America or Indymac’s layoffs, which will add another 11,000 job cuts to the tally.

More conclusive government data indicated that mortgage employment fell from 360,700 at the end of March to 357,800 as of the end of May.

(photo: myklroventine)

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