The mortgage industry laid off thousands more than it hired in the second quarter of 2013 as declining delinquencies forced reductions in headcounts, according to mortgage employment data, but companies with reverse mortgage holdings bucked the trend.
Mortgage layoffs outpaced hirings by just under 3,000 in the quarter, indicates Mortgage Daily‘s Mortgage Employment Index, and the trend is likely to continue in upcoming months.
The index uses public company reports, state employment data, and quarterly surveys to reflect mortgage-related hiring and layoffs. The second quarter results came in contrast to first quarter numbers where the industry had its biggest expansion in nearly four years, growing by more than 5,100.
However, 2013’s second quarter tracked nearly 10,000 layoffs and less than 7,000 hirings.
A couple firms with reverse mortgage connections actually expanded their headcounts, however. Nationstar had the biggest growth in headcount than any other firm, followed by Walter Investment Management. These expansions stemmed from aggressive servicing portfolio growth, says Mortgage Daily.
Ocwen also expanded its servicing portfolio, but uses mostly offshore employees, Mortgage Daily notes.
Bank of America, meanwhile, experienced the most job losses of any other mortgage company. As the nation’s third-biggest servicer, the bank has been “aggressively” unloading mortgage servicing rights, as has been Chase, the second-largest servicer. Wells Fargo and Chase have both disclosed thousands of second-half layoffs.
Access the full second quarter report.
Written by Alyssa Gerace