What We're Hearing

The world's biggest drug maker --that would be Pfizer -- is closing six of its 20 research facilities, reorganizing others, and cutting the jobs of roughly 15% of its scientists and related staff. What does this piece of news have to do with the mortgage industry? Everything, when you think about it. It's unclear how many people will lose employment -- and hopefully some of these workers will be snatched up by other drug firms. But wherever these six research facilities are located, there likely are "support" businesses, and retailers, and restaurants -- oh, and homes to buy and sell. Some of these laid off Pfizer scientists likely are middle-class or upper middle class workers and have nice homes -- and a mortgage on that home. And maybe that scientist has a spouse who stays at home with the kids. Well, that one-earner family is now a no-earner family income. And maybe that laid off scientist has plenty of savings and a nice severance package to hold him over until a new job comes along. Maybe. Pfizer, of course, isn't the only company that is still laying off workers in this "recovering" economy. We see drips and drabs of the layoff notices. The federal government tell us that the job situation is getting better. Let's hope so -- for the sake of the families of those getting laid off and all the servicers and investors that are on the hook for losses. And Fannie Mae and Freddie Mac, and GNMA that own or guarantee their loans...