It was the worst quarter since before the financial crisis for mortgage employment, which declined by more than 15,000 jobs, with even bigger losses forecasted ahead. With more than 17,000 layoffs and fewer than 2,500 hirings, the number of mortgage jobs contracted by 15,282 in the three months ended Sept. 30, according to Mortgage Daily's Third Quarter 2013 Mortgage Employment Index.
The index reflects data collected from employers as well as from state employment agencies, public filings and news announcements and reports.
Period
Layoffs
Hirings
Net
Q3 2013
17,683
2,401
-15,282
Q2 2013
9,950
6,969
-2,981
Q3 2012
5,785
8,711
+2,926
It was the worst quarter since 2007 - a year that saw net loss of 88,817 jobs.
"The industry was hit with a double whammy during the period," said Mortgage Daily Publisher Sam Garcia. "Improving loan performance reduced demand for servicing employees, while rising rates dragged down refinance activity and eliminated the need for production employees."
Preliminary fourth-quarter data suggests that layoffs will be even higher in the next report. Elevated layoff activity will continue into at least Q1 2014.
Texas, which has become the country's mortgage servicing hub, saw more layoffs than any other state.
Biggest State Losses
►Texas: -1,406
►Florida: -1,114
►Ohio: -600
Although Arizona had the biggest net gain, it is taking a beating in the current period.
Biggest State Gains
►Arizona: 350
►Missouri: 250
►Kansas: 216
The country's three biggest lenders—Wells Fargo, JPMorgan and Bank of America— were responsible for much of the quarter's activity.
Biggest Company Losses
►Bank of America: -6,575
►Wells Fargo: -5,300
►Chase: -1,810
Nationstar had the biggest net gain, though it has since disclosed plans to eliminate 1,100 positions as it consolidates offices.
Biggest Company Gains
►Nationstar: 420
►ELM Services: 160
►AMS: 150
