Lenders Cut 1,500 Workers While U.S. Creates More Jobs

Mortgage companies cut 1,500 full-time workers from their payrolls in March after adding 4,400 full-time employees the previous month. The U.S. Bureau of Labor Statistics reported Friday that employment in the mortgage banker/broker sector fell to 252,500 full time positions in March from 254,000 in February. Mortgage industry employment is down only 6.7% from March 2009, compared to a 21.6% drop during the previous 12-month period. Meanwhile, loan production slowed in the first quarter, which could explain some of the layoffs in March. (See story below.) On the positive side, Friday's nationwide jobs report paints a much improved employment picture with 290,000 new hires in April -- more than analysts expected. March's job additions were revised upward to 230,000 from 162,000. For mortgage lenders and servicers the anticipation is that these workers will be able to make their loan payments or perhaps buy a new or existing home.