December 2, 2010 by MSI
Two million Americans are in the midst of preparations and contingency
plans as they face the end of their unemployment benefits in December. And,
while
unemployment nationwide has fallen to 9 percent in October from 10.6
percent in January 2010, we remain in the midst of the second worst employment
crisis in the past 50 years. While the impact of unemployment, combined with
the economic conditions and the continuously struggling housing market, on the
mortgage industry are obvious, what has happened to the industry in terms of
its validity as an employment option?
Over the past five years the number of individuals working in the mortgage
industry has literally been cut in half, according to the Mortgage Employment
Index provided by MortgageDaily.com, from a record high of 535,400
professionals in October 2005 to just 246,400 in September 2010. While the
losses were significant in 2007 (-88,817) and 2008 (-36,766), we did witness a
gain in 2009 with a net positive of 8,321 individuals joining the mortgage
lending industry. According to recent numbers released for the third quarter,
an additional 3,216 layoffs occurred in the July to September period,
significantly impacted by the closing of Wells Fargo Financial Inc.’s subprime
origination business.
While the mortgage industry, like many others associated with real
estate, has most likely been impacted for the long term and potentially forever,
there are some ‘bright spots’ with state hiring in the industry up in North
Carolina, California and Texas. Only time will tell, but the days of the ‘easy
mortgage’ are definitely over for now and with lending restrictions
experiencing more regulation, additional foreclosures forthcoming, and
unemployment remaining at historical highs, it’s likely going to be a while
before we can truly predict what may or may not happen as it relates to
mortgage employment.
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