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

Markets Assess US-China meeting
Markets Assess US-China meeting

Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.

Latest news

FED and BOE Make Another Attempt to Beat Inflation
FED and BOE Make Another Attempt to Beat Inflation

The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

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