Mortgage Industry Workforce Takes Hit as Layoffs Outpace Hirings

Due to a drop in hirings, mortgage sector jobs lost traction last year, going from a net gain in 2009 to a net loss in 2010, according to the online industry resource ""MortgageDaily.com"":http://www.mortgagedaily.com.

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The Web site's ""Mortgage Employment Index"":www.mortgagedaily.com/MortgageEmploymentIndex.asp?spcode=pr reveals that layoffs in real estate finance outnumbered hirings by 3,100 jobs last year. In 2009, hirings exceeded layoffs by more than 8,000.

MortgageDaily.com reports that a steep decline in recruiting caused the deterioration between 2009 and 2010.

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While about 10,000 jobs were filled in 2010, more than 30,000 were filled a year earlier, most of which were positions aimed at helping delinquent borrowers.

A large portion of 2010's losses occurred in the final quarter as a result of falling refinance activity, according to MortgageDaily.com.

California's net loss - more than 1,000 - exceeded all other states. Texas, on the other hand, had a net gain of more than 600, better than any other state.

While JPMorgan Chase & Co. had the biggest gain of any lender, Wells Fargo & Co. did not fare so well, having already disclosed nearly 2,500 first-quarter 2011 mortgage layoffs. In addition, three major lenders closed their reverse mortgage businesses.

Last year's losses were still fewer than 2007 when layoffs outpaced hirings by nearly 90,000 jobs.

Recent data from the ""Bureau of Labor Statistics"":http://www.bls.gov/ show employment in the mortgage sector has fallen more than 50 percent over the last five years.

In late 2005 and early 2006, the industry claimed 500,000 employees. As of the end of February 2011, jobs in the mortgage finance sector totaled 248,000, according to the government agency.