Hiring by Independent Mortgage Firms Slows in August

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Hiring in the mortgage industry slowed in August, as small lenders added just a few hundred workers to their payrolls, but still managed to increase their headcount for the fourth month in a row.

The Bureau of Labor Statistics reported Friday morning that nonbank mortgage companies hired 400 full-time employees in the month of August, compared to 2,800 in the prior month. BLS originally reported 3,400 new hires in July.

Despite the downward revision, overall, employment in the nonbank mortgage banking/broker sector rose to 286,200 in August from 285,800 in July. Back in August 2013, this sector had 303,000 full-time employees. But the refinancing boom was on its last legs and employment in the mortgage industry had already begun a long decline.

The uptrend in hiring comes as Fannie Mae and Freddie Mac have posted higher loan purchases since May. Fannie purchased $37.7 billion in mortgages from lenders in August, up from $30.4 billion in May. Freddie purchased $18.7 billion in mortgages in August, up from $12.5 billion.

The latest Federal Housing Administration report shows lenders originated 74,870 FHA insured single-family loans in July, up from 62,960 in May.

Homebuilders are also hiring, which is a good sign in terms of demand for new homes.

BLS commissioner Erica Groshen pointed that hiring the construction trades remained strong in September. Builders hired 16,000 workers including 6,000 for residential construction. “Over the year, construction employment has grown by 230,000,” she said in a statement.

Meanwhile, the U.S. economy created 248,000 new jobs in September. And the August and July reports were revised up to 180,000 and 243,000 respectfully. Employment gains for August and July combined where revised upward by 69,000 jobs. The unemployment rate fell to 5.9% in September from 6.1% in August.

There is a one-month lag in the Bureau of Labor Statistics reporting of mortgage employment data.

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