Digg|
Save|
License|
Print|
E-mail|
Double-click any word or phrase in the story to search this site.
January 8, 2008 - 9:18PM
State mortgage industry feels business dip
Misty Williams, Tribune
Arizona’s mortgage industry was one of the hardest-hit in the country last year, with more than 2,000 jobs lost to company closures and layoffs.
Nationwide, the number of people working in real estate finance fell by more than 86,000 in 2007, according to a report by MortgageDaily.com, which analyzes layoffs and hirings at mortgage companies.
“We’re still going to see some losses (in 2008), but I think most of the companies have taken their hits,” Web site publisher Sam Garcia said.
The drop was spurred by massive layoffs at Countrywide Financial, American Home Mortgage Investment and Tuscon-based First Magnus Financial, the report states.
Countrywide alone saw a net job loss of 11,665 last year, while bankrupt First Magnus lost 5,940 jobs.
Arizona experienced a net loss of 2,505 mortgage jobs last year, the report shows.
The state had seen some of the highest home appreciation in the country, along with corresponding growth in lending, Garcia said. So when the market turned, it suffered one of the largest tumbles in mortgage originations.
In 2006, Arizona lenders hired 3,791 people, compared with just 50 last year, he said.
When business was good, lenders overstaffed and opened offices everywhere, said Bryan Madsen, a loan officer at AmeriFirst Financial in Mesa. Then, the big lenders came in and started hiring, he said.
Now, the existing-home market has slowed drastically, and many borrowers owe more than their homes are worth, eliminating refinance opportunities and slowing business.
“We’re gridlocked right now,” Madsen said.
He added that he’s seeing loan officers from smaller companies drifting over to larger lenders.
Small firms aren’t doing enough loan business to make up for the overhead costs, he said.
Others are gradually changing fields.
“There’s a lot of them who were opportunists,” Madsen said. “It wasn’t a career.”
The ones leaving haven’t established themselves in the community as reliable sources, said Elaine Paddy with Alliance Home Mortgage in Mesa.
Some also haven’t adjusted their lifestyles and budgets to the smaller incomes they’re bringing in, Paddy said.
“The industry has changed,” she said. “Work harder, work smarter or find another job.”
News updates are sent daily. You can unsubscribe at any time.
Please add your comments, but follow these guidelines to keep this a safe, credible place for discussing the news: