UPDATE: Here are the figures: Both Countrywide and California get
clobbered. Plus more than 100,000 mortgage employees lose their
Submitted by Ed Cage / firstname.lastname@example.org
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“The subprime crisis of 2007 has left more than 100,000 mortgage employees without a job — with many facing foreclosure themselves,”
MortgageDaily.com conducted an analysis of layoffs, hirings and company closures involving at least 50 employees at 205 mortgage companies in 2007.
During that period, the group found that the number of employees working within real estate finance fell by 100,000, of which 86,701 were analyzed.
“The subprime crisis of 2007 has left more than 100,000 mortgage employees without a job — with many facing foreclosure themselves,” said Sam Garcia, publisher of MortgageDaily.com.
“While more layoffs are anticipated for the mortgage sector during 2008, we expect the pace of job cuts to slow significantly. In addition, employment growth is projected in mortgage servicing as delinquencies and foreclosures rise.”
Here are the largest net job losses by lender:
Countrywide Financial -11,665
American Home Mortgage -6,628
First Magnus -5,940
New Century -5,200
Residential Capital LLC -4,470
Washington Mutual -3,580
Though IndyMac Bancorp laid off 1,400 over the course of the year, the struggling mortgage lender offset that loss by hiring 1,200 employees.
It’s unclear, however, if this survey takes into account the voluntary severance packages extended to IndyMac employees that continue to be reported.
Interestingly, JPMorgan Chase actually saw a net gain of 4,465 jobs during 2007 as it continues to make its push in the under pressure mortgage sector.
By state, California led the decline in mortgage-related work, with a net loss of 15,933 employees.
Here are the 2007 net gains or losses by state (select list):
New York -2,071
Check out the latest list of mortgage layoffs, lender closures, mergers, and rumors.
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