4,500 Mortgage Jobs Cut in April

Mortgage companies cut 4,500 full-time employees from their payrolls in April after a first quarter surge in originations, particularly refinancings, began to lose some steam. The U.S. Bureau of Labor Statistics reported that employment in the mortgage banker/broker sector fell to 266,100 positions in April from 270,600 in March. Compared to the same month a year ago employment was down 15%. However, the number for active mortgage brokers rose by 1,200 in April to 74,600. Banks and thrifts reported a 70% jump in originations from the fourth to the first quarter. Fannie Mae and Freddie Mac reported a surge in refinancings in March followed by a pullback in April. Fannie's purchases of refinancings dropped from $77 billion in March to $45.5 billion in April and Freddie's fell from $52 billion to $43.3 billion in April. Mortgage Bankers Association vice president for research Michael Fratantoni said company announcements about hiring have involved "relatively small numbers" compared to the 47% drop in total industry employment since the peak in 2006. "The pace of decline [in industry employment] is slowing but we are still seeing some declines," Mr. Fratantoni said.