American mortgage industry experiences job losses

American mortgage industry experiences job losses

With mortgage applications heading south to their lowest value since late-2014, the American home lending sector is currently experiencing a key overhaul in how it’s getting on and also manages staffing levels.

Call-center staff members handling customer refinance requests turn out to be the most vulnerable due to the fact that rates have started soaring, as experts pointed out.

Those applications have declined to their lowest result since late 2000, as follows from a seasonally updated index provided by the Mortgage Bankers Association. As a matter of fact, in the first quarter, refinancing made up nearly 37% of mortgage originations, tumbling from 75% at its maximum in 2012.

The given dive has occurred because interest rates on most 30-year mortgages have rallied to 5.1%, which is the highest outcome since February 2011.

By the way, those homeowners who have already borrowed since then don’t have an opportunity to save funds by refinancing.

For the 2007-2009 financial meltdown, American financial institutions laid off mortgage staff members because demand froze and therefore they experienced devastating losses in the business. Then, bank executives found themselves hiring folks just to handle delinquent loans, while mortgage firms staffed up to refinance loans because interest rates inched down.

However, this time, the dive in mortgage workforce might be stickier due to the fact that key lenders as well as their technology-enabled counterparts, including loanDepot Inc and Quicken have attempted to automate much more of their business.

As a matter of fact, the industry employs approximately 350,000 folks - the same number as in 2002, as follows from government labor data collected by the MBA. As for employment, it hit 500,000 at its climax during the housing bubble.

Wells Fargo and JPMorgan Chase & Co appeared to be the two largest American mortgage lenders for the first six months of 2018, representing 7% of the market. They have cut respectively 600 and 400 mortgage jobs.

 

Similar

British inflation jumps

The UK’s key inflation rate rallied in February, although stayed close to January's two-year minimum, assisting customers to preserve their spending power even as Brexit was still uncertain…

French surge strengthens

French quarterly surge is expected to strengthen in the first half of 2019 because consumer spending derives benefits from improving household incomes as well as reviving business confidence after protests at the end of 2018…

Latest news

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera