Mortgage Employment Index Tumbles

There were 930 fewer people working in the mortgage sector at the end of the third quarter compared to the second quarter, according to the Third-Quarter 2010 Mortgage Employment Index from

During the third quarter, 3,216 layoffs were recorded – worse than the second quarter's 2,028 – according to the report. Hirings also deteriorated, falling to 2,286 from the prior period's 2,768.

The net effect was that there were 930 fewer people working in the mortgage sector than in the second quarter. Third-quarter activity also worsened from a year earlier.

Mortgage employment peaked in October 2004 at 535,400, based on government data. In September 2010, the industry-wide headcount had fallen to 246,400.

The closing of Wells Fargo Financial Inc. had a major impact on third-quarter activity. Without the loss of those jobs, the Mortgage Employment Index would have had a gain, says.

In July, Wells Fargo announced it was closing 638 Wells Fargo Financial stores across the country. At the time, Wells Fargo estimated that 2,800 positions would be eliminated by early autumn, with another 1,000 positions to be eliminated over the next year.

More than 100 layoffs were reported for First Mortgage Corp. and Wealthbridge Mortgage, adds. Net gains of more than 200 occurred at JPMorgan Chase & Co., MetLife Bank and Neighborhood Assistance Corp.



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