PRESS RELEASE
Mortgage Jobs Wiped Out from MortgageDaily.com
DALLAS — (August 6, 2007) Driven by a rapid contraction in nonprime lending, the number of mortgage jobs sank during the latest reported month and is headed lower, according to https://www.mortgagedaily.com — the dominant source of online news for the mortgage industry.
People working in mortgage-related jobs totaled 458,800 in June — falling from a peak of 507,000 in October, according to data released from the U.S. Department of Labor Friday.
Impacting June’s mortgage employment numbers were layoffs at Washington Mutual Inc., BNC Mortgage LLC and GreenPoint Mortgage.
Upcoming government data is likely to reflect further declines, with last week’s massive layoffs at Alt-A lender American Home Mortgage Investment Corp., which cut more than 6,000 jobs Friday.
And activity at subprime lenders will also help fuel more declines.
First NLC Financial Services closed 23 retail branches and cut 640 jobs, a company executive told MortgageDaily.com. Accredited Home Lenders Holding Co.’s 4,200 employees could be unemployed if a deal to acquire that company collapses. And Fieldstone Mortgage Co. told its 900 employees Wednesday that it would halt new business as it grapples with the potential insolvency of its parent — Credit-Based Asset Servicing and Securitization LLC, or C-BASS.
The latest round of consolidation was prompted by the evaporation of the secondary market for subprime and Alt-A business. With investor appetite for any risky mortgage-backed debt gone, companies including IndyMac Bank FSB, SunTrust Mortgage Inc, National City Mortgage and Wells Fargo Home Mortgage have cut back or curtailed offerings for Alt-A borrowers — people with good credit who lack the ability to verify their income, their assets or both.
The deteriorating secondary market has nonprime originators eyeing more conforming mortgage business that can be bought by Fannie Mae and Freddie Mac. The two government-sponsored enterprises provide liquidity to the mortgage markets during times of turmoil, as is the case currently.
Read complete mortgage employment news at:
https://www.mortgagedaily.com/MortgageEmployment.asp
About MortgageDaily.com
Founded in 1998, MortgageDaily.com is the dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.
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Source:Â MortgageDaily.com
