Q2 Mortgage Employment Index Deteriorates

DALLAS, Aug. 26, 2013 /PRNewswire/ -- Declining delinquency drove servicers to reduce headcount in the second quarter. The biggest casualties were suffered by the largest servicers, while up-and-coming servicers added to their payrolls. The pain is likely to deepen in upcoming quarters.

Mortgage layoffs exceeded hirings by almost 3,000 during the second quarter, according to the Mortgage Employment Index from Mortgage Daily.

The index reflects mortgage-related hirings and layoffs tracked by Mortgage Daily and is based on public company reports, state employment data and quarterly surveys.

Second-quarter job losses contrasted the first quarter, when the industry had the biggest expansion in nearly four years.

In the second-quarter 2012, staffing grew by more than 1,300 positions.

Period

Net

Q2 2013

-2,981

Q1 2013

+5,129

Q2 2012

+1,335

The most recent period reflected nearly 10,000 layoffs, the most since the first-quarter 2009, and just under 7,000 hirings.

Florida fared best in the latest quarter, while the net loss of mortgage jobs in California was the worst of any state.

State Gains/Losses

State

Net

FL

574

AZ

300

MO

242

CA

-1,509

NY

-1,280

SC

-515

Nationstar expanded headcount by more than any other firm, followed by Walter Investment Management. Behind the gains was aggressive servicing portfolio growth.

Ocwen also rapidly expanded its servicing portfolio but relies primarily on offshore employees.

More job losses were experienced by Bank of America than any other company. BofA, the nation's third-biggest servicer, has aggressively been unloading MSRs.

Also reducing its mortgage servicing portfolio has been the second-largest servicer Chase. 

Gains/Losses by Entity

Company

Net

Nationstar

2,300

Walter

1,400

M&T

564

BofA

-5,000

Chase

-1,826

HUD

-900

Initial data on second-half mortgage employment indicate that layoffs are accelerating because of improving loan performance and slowing refinance activity.

Both Wells Fargo and Chase recently disclosed thousands of second-half layoffs.  

Full Q2 2013 report is available to subscribers at:
www.MortgageDaily.com/MortgageEmploymentIndex082613.asp?spcode=pr

Historical Mortgage Employment Index data is available at:
http://www.mortgagedaily.com/MortgageEmploymentIndex.asp?spcode=pr

Mortgage employment news:
http://www.mortgagedaily.com/MortgageEmployment.asp?spcode=pr

About Mortgage Daily
Founded in 1998 by 20-year mortgage industry veteran Sam Garcia, Mortgage Daily is a leading online source of mortgage news and mortgage statistics. Mortgage Daily also publishes the weekly Mortgage Market Index and quarterly Mortgage Litigation Index, Mortgage Fraud Index and ranking of the biggest lenders. Visit Mortgage Daily at www.MortgageDaily.com.

CONTACT:
Holly Himelright
214.521.1300
journalists request complimentary report:
newsalert@MortgageDaily.com  

SOURCE Mortgage Daily



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