A recent report by the Bureau of Labor Statistics reported a Mortgage Industry Jobs Increase of 7% over last year.  The 7% Mortgage Industry Jobs Increase represents about 2,800 jobs.  This can be seen as good, but it can also be seen as bad.  I will explain.

An increase in jobs in a time like we are in today is good.  After all with so many people out of work any increase in jobs is a good thing.  I know that we at McCue Mortgage have recently hired two new Underwriter, and one Loan Processor because of the increased volume that we have be experiencing.  We have also added more Customer Service Representatives because of the increase in loans that we are servicing.  Those are good Mortgage Industry Jobs Increases, and a positive sign for our company.

But a Mortgage Industry Jobs Increase can also be a bad thing.  I will use my company again as an example.  Underwriters, Processors, and Customer Service Representatives were not the only employees that we have added this year.  We have also unfortunately had to hire additional Collectors, because of an increasing number of delinquent loans, and Loss Mitigation Representative, because of the number of foreclosures and Short Sales.  Those are bad Mortgage Industry Jobs Increases.  Increases to those positions means that Borrowers are not paying their mortgages, and homeowners are losing their homes.

If we have had to hire more people for the positions that I mentioned above, then I would imagine that other Lenders are also experiencing the same.  So saying that Mortgage Industry Jobs Increased this year is not necessarily a good thing.  In order to determine if the Mortgage Industry Jobs Increase was good or not, we have to also see a break down in the positions that the 7% Mortgage Industry Jobs Increase represents.  If a majority of the Mortgage Industry Jobs Increase was because of the need for more Collectors and Loss Mitigation Representatives, then I would say that those are Mortgage Industry Jobs Increases that we would rather see less of and not more of.

 

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 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

 
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16 Comments on Mortgage Industry Jobs Increase

OCT
13
1,951,369 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

That number is so minuscule, it holds little to no interest.

The government is like a giant gorilla in a cage, beating it's chest.

CORRECTION!  The government is like a giant gorilla in a cage, stuffing it's face with bananas and beating it's chest.
8:40am • #1
397,041 Points 5 Featured Posts Outside Blog Attended Rain Camp

My metric for a positive recovery of real estate (or a growing demand for the real estate industry) has been to look to see if Title/escrow companies are hiring or laying off.  They are huge companies, and I just figure they might know something more than I do.  Naturally, the handle both purchases and refinances, so it may not help me out as far as real estate selling, but it can be a good indicator.
8:48am • #2
1,139,228 Points 154 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Interesting perspective.  Yes, it does depend what is behind the numbers.  I just hope things start/continue to improve/accelerate.  We all would like that.
8:53am • #3
621,610 Points 11 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

George you are absolutely right. Just wished more people are buying houses and have no one losing it to foreclosure. Good news sometimes is not all Good news I guess. Thanks for letting us see it that way.
10:17am • #4
536,210 Points 38 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

7%!

WOW!!

Sorry Lenn, I think this could be great news.

What concerns me is what were these jobs?

Loan Originators would be great and 2,800 would be an incredible number, we don't want a return to the days when if you could write (a little) you could originate loans.

On the other hand short sale clerks and collectors are also part of the mortgage industry. Jobs are good, but some are only good for the newly employed.

Bill
10:41am • #5
1,360,992 Points 244 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Lenn, I am not sure just how big the significance of 7% would be in the whole scheme of things. But when I saw that figure and I know that the areas that we have hired the most new employees has been collections, that was not a positive increase in my eyes.  We are doing everything that we can to try to get homeowners current, but the fact that we are having to hire more and more people to make calls to homeowners that are behind on their payments is not good, and those are not the type of jobs that you or I want to see.

Gary we are an Attorney State and not a Title State so I did not think of that, but I would think that it would be a good tool to measure positive results.

Debbie, it is like anything else the numbers are only as good as the data behind them.

Lanre, I would love to see the same, more purchases and less foreclosures would be a very good thing.

Bill, like I commented to Lenn I am not sure how significant the 7% would be in the whole scheme of things, but it would be nice to see the break down to be able to determine if the increase was because of productivity, or because of more foreclosures and short sales.  One is good the other is not.
11:14am • #6
776,041 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

George, you make a good point on both sides of that coin.  My concern now is what's happening with defense cuts as my area has a lot of military personel with the Redstone Arsenal and of course funding for the space program as NASA has a huge presence in Huntsville.
11:25am • #7

Collectors are never a good indication of a positive economic recovery. There are many more people that are hurting than many realize.  There are a lot of people that are under-employed, many that are unemployed and many that are well qualified and about to lose their source of income. 
11:33am • #8
839,768 Points 69 Featured Posts Outside Blog Called Shot Master

I remain skeptical especially at election time. I also think fondly of George Orwells 1984 book where he speaks about government chocolate rations going up and breaking records as compared to last month and last quarter. Meanwhile, I don't recall last month or last quarter figures and I have never seen any chocolate then or now. But, chocolate is doing well...good post...questionable government data...thank you....
11:54am • #9
866,303 Points 18 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

The actual number is always interesting, but as you point out there is more than just the number which one must look at to understand what this really means.
12:04pm • #10
114,291 Points Outside Blog

Statistics are always interesting but they always have to be interpreted correctly to really mean anything.
1:18pm • #11
150,363 Points 2 Featured Posts

George, you are right, this is good and bad news.  Like you pointed out the bad being the hires in collections.  I think lenders are starting to be more aggressive with the collections where in the past they let the time of collections be stretched out... hence hiring in that area.  Let's hope the hiring turns to processors and underwriters and customer service reps.
2:03pm • #12
1,189,433 Points 31 Featured Posts Outside Blog Called Shot Master

Good news, bad news story George. Guess we are not out of the dark yet.
5:42pm • #13
OCT
14
813,500 Points 163 Featured Posts Localism Sponsor Outside Blog Called Shot Master

George, this is such a great post that demonstrates what is REALLY going on. We are just not out of the woods yet.
4:10am • #14
495,615 Points 29 Featured Posts Outside Blog Called Shot Master

The collection hires are certainly increasing, but so are the many of the other jobs. There are lenders that are firing additional underwriters, processors and closers.

I was out to luch with a lender earlier this week, who shared they added 50 people in the last 90 days, specifially for the FHA 203 K division. That is a really serious commitment to that product.
4:13am • #15
177,448 Points 59 Featured Posts Outside Blog

2800 new jobs created in one industry, but at the same time other industries are laying off and eliminating 2800+ jobs, so I doubt there will be much impact. Revlon just announced that they are laying off 117 workers just in MD. It's election season, which means it's time to BS the public by trying to make bad news look better than it really is. There is still a lot of mess waiting and needing to be cleaned up in the real estate industry.
4:48am • #16

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George Souto

Middletown, CT

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George Souto NMLS# 65149 FHA, CHFA, VA Mortgages Connecticut

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