Mortgage Firms Continue to Cut Jobs, Brokers Mostly

Mortgage companies cut 2,400 full-time employees from their payrolls in June, including 1,800 loan brokers, according to new government figures released Friday morning.  

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The U.S. Bureau of Labor Statistics reported that employment in the mortgage banker/broker sector fell to 239,100 in June from 241,500 in May. (The mortgage numbers lag the national figures by one month.)

Since April when new loan origination compensation rules became law 3,200 brokers have lost their jobs or shifted over to working for a bank or nonbank funder. This comes despite reports that more lenders are considering entering the wholesale channel.  

Although the BLS figures show a net industry job loss for June, mortgage firms have actually added 3,400 other (non-broker) employees to their payrolls since the spring.  

Overall, U.S. firms hired 117,000 Americans in July. Although state and local governments continued to shed jobs, private sector companies added 154,000 workers to their payrolls. The nation’s unemployment rate edged down to 9.1% in July from 9.2% in June.

In another encouraging sign, the Census Bureau revised upward the June jobs figuring, saying the economy added 25,000 positions, not 18,000 as previously reported.

Daily Briefing | Friday, August 5, 2011

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Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_404/mortgage-firms-cut-jobs-1026006-1.html

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