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Acquisition's Close Helps ISGN Move Forward with Larger Reorganization

December 17, 2009

The closure of ISGN Solutions Inc.'s acquisition of Fiserv Inc.'s loan fulfillment services business is helping the former company move forward with its larger plans to reorganize, according to an ISGN spokeswoman. The deal, slated to close in November, took slightly longer simply because of holiday season delays, the spokeswoman told NMN. The company's larger reorganization refocuses servicing and origination functions for marketing purposes, she said. This was done to mirror the organization structure of the lending industry, the company serves, according to the spokeswoman.

'Shadow Housing Inventory' Sees Increase While Unsold Inventory Wanes

December 17, 2009

By the end of the third quarter the estimated number of homes heading toward foreclosure but not yet included in "unsold inventory" figures reached 1.7 million, up from 1.1 million a year earlier, according to new First American CoreLogic data. The increase in this estimate of real estate-owned by banks and mortgage companies as a result of foreclosures and other actions is affecting home sale rates and is in contrast to the shrinking visible supply of unsold inventory, which decreased from 4.7 million in the third quarter of 2008 to 3.8 units during the same period this year. The visible inventory supply fell to 7.8 months in September 2009, down from 10.1 in 2008. But the supply of REO home estimates, also referred to as "shadow housing inventory," is at 3.3 months, up from 2.4 months a year ago. Combined, the total unsold inventory by September 2009 reached 5.5 million units, down from 5.7 million in 2008. Shadow housing inventory is comprised of mortgages that are 90 days or more delinquent and that are not included in unsold inventory.

Heading Off Strategic Default Without Principal Reduction or Mods

December 17, 2009

Loan Value Group, Rumson, N.J., is close to partnering with a national mortgage lender to begin rolling out a patent-pending program aimed at heading off "strategic default," according to industry sources. An LVG representative declined to comment and the lender was not identified. The sources told NMN the program avoids the use of loan modifications or reduction of principal. Instead it provides an alternative way to keep at-risk borrowers who might otherwise be encouraged to default due to negative equity paying on their original mortgage notes. The program is said to be designed to align the interests of lenders, servicers, government-sponsored enterprises and taxpayers while avoiding costs to homeowners or taxpayers. The sources said it is set for roll out and implementation on a private-label basis to eligible homeowners as early as the first quarter of 2010.

Average Weekly 30-Year Rate Seen Rising but Still Below 5%

December 17, 2009

Signs of an improving economy are lifting average weekly mortgage rates, but they are still below 5% and spurring refinancing, according to Freddie Mac. "Interest rates have been below 5% over the past seven weeks," said Frank Nothaft, Freddie Mac's chief economist. The average rate for a 30-year fixed-rate mortgage, at 4.94% during the week ended Dec. 17, is getting closer to 5%. The previous week it was 4.81% and a year ago it was 5.19%. The average 15-year FRM rate was 4.38% during the most recent week. It was 4.32% a week ago and 4.92% a year ago. The average rate for a five-year hybrid Treasury-indexed adjustable-rate mortgage during the week ended Dec. 17 was 4.37%, up from 4.26% a week ago but down from 5.60% a year ago. The average one-year Treasury ARM rate was 4.34% in the most recent week, up from 4.24% a week ago but down from 4.94% a year ago. Average points were 0.7 for 30-year FRMs, 0.6 for 15-year FRMs and five-year Treasury hybrids, and 0.5 for one-year Treasury ARMs.

Third Quarter Origination Profits Down 33% from Second Quarter

December 17, 2009

Independent mortgage bankers made a profit of $902 per loan in the third quarter, down 33% from the previous quarter, according to a new study by the Mortgage Bankers Association. "These are still healthy margins," said Marina Walsh, MBA associate vice president of industry analysis. But she noted that 18% of the reporting mortgage companies posted losses in the third quarter, up from 4% in the second quarter. The decline in third-quarter profitability reflects a 34% drop in loan volumes as well as refinancing volumes. The 306 reporting companies originated on average $189.8 million in home loans, down from $281 million in the second quarter. Refinancings comprised 44% of originations in the third quarter, compared to 62.3% in the previous quarter. Despite the drop in volume, the average "pull-through" rate of turning loan applications into closings was 72% in the third quarter, down only one percentage point from the second quarter. "The good news is we are not back to the third quarter of 2008," Ms. Walsh said, when 30% of the companies reported losses. A year ago, mortgage companies made only $332 per loan.

TMS Looks to Wholesale, FHA to Help Boost 2010 Volume

December 16, 2009

Total Mortgage Services LLC, Milford, Conn., is on track to surpass its $750 million total volume estimate for 2009 and, despite pessimism about 2010's origination environment, believes it could lend more than $1 billion next year. John Walsh, president of Total Mortgage Services, recently told Origination News that the company expects to be able to grow its volume further next year even though total originations are expected to decline because it is planning to soon add a wholesale channel and obtain a "full eagle" from the Federal Housing Administration. This is expected to expand on its growing core business of retail agency and jumbo originations, which alone have allowed the company to grow its volume considerably from 2008, when its total production was $450 million and the market was particularly challenging.

Ely: Covered Bonds a $21.5 Trillion Opportunity, But...

December 16, 2009

If covered bonds ever become a reality in the U.S., it would be a $21.5 trillion opportunity for financial institutions with about half of that tied to residential loans, according to analyst Bert Ely. In testimony before Congress, Mr. Ely cautioned that the $21.5 trillion figure is a number that represents the market's potential - not the reality. "While covered bonds will not come close to providing 100%" of the funding for all different asset types "even a 10% share would be enormous," he said. According to testimony before the House Financial Services Committee, the covered bond market has many hurdles to clear including the establishment of a regulator to oversee the business and how to treat a pool of covered assets should the issuer go out of business. A covered bond is bank issued debt that (unlike existing U.S. MBS) is not sold into a legal "trust." This allows investors to look to the issuing bank for repayment if something goes wrong with the credit quality of the underlying loans. The Obama Administration is expected to review the use of covered bonds in crafting its plans to revamp Fannie Mae and Freddie Mac.

FDIC Gives One-Year Transition for Moving Assets to Balance Sheets

December 16, 2009

Federal regulators are giving banks a one-year transition period to deal with the risk-based capital implications of moving certain mortgage securitizations onto their balance sheets due to recent accounting rules changes that go into effect Jan. 1. The Federal Deposit Insurance Corp. and the other regulators realize that affected banks and thrifts are going to see their assets balloon as they consolidate private-label MBS and commercial securities onto their books. A final rule adopted by the FDIC board of directors allows banks to exclude the consolidated assets from risk-based capital calculations during the first two quarters of 2010. Over the third and fourth quarters, banks only have to count 50% of the consolidated assets for RBC purposes. Banks can adopt these transition options voluntarily starting Jan. 1. FDIC-insured institutions also will see an increase in their allowance for loan losses due to the implementation of Financial Accounting Standard 166 and FAS 167. Regulators are relaxing restrictions on including loan loss allowances in Tier 2 capital for two quarters. FDIC chairman Sheila Bair said banks are already under capital pressure and the transition period is appropriate. "It is temporary and by 2011 banks will need to be fully compliant," Ms. Bair said at an FDIC board meeting. She also noted the transition relief does not apply to leverage capital ratios. "We have always followed GAAP accounting for the leverage ratio so there will be no transition there," she said.

HUD Sets Proposed Minimum Standards for Loan Officer Licensing

December 16, 2009

The Department of Housing and Urban Development has issued a proposed rule that sets minimum standards for state licensing of loan officers and mortgage brokers. Congress directed HUD to set minimum licensing requirements for states under the Secure and Fair Enforcement Mortgage Licensing Act of 2008. If HUD determines a state does not meet the minimum standards, the department is charged with administering a licensing system for the state. "By introducing nationwide standards of uniform licensing for loan originators, the SAFE Act is taking an important step in returning integrity and accountability to the residential mortgage loan market," said HUD assistant secretary David Stevens. The public comment period on the proposed SAFE rule ends in 60 days.

Future of National City Warehouse in Doubt

December 16, 2009

Even though the warehouse lending platform of National City is among the largest in the mortgage space - and continues to be profitable - PNC Financial Services plans to close it by mid-year 2010, according to warehouse lending officials. A spokesman for PNC confirmed the closing but declined to provide details. Commercial banks and other investors interested in the business have contacted PNC about buying the division but those talks have gone nowhere. "It's really a shame," said one warehouse advisor, requesting his name not be used. "They still have about $1.5 billion in commitments." This official noted that nonbank residential originators continue to fear that none of the remaining players in warehouse lending will fill the void once the National City unit ceases to exist. (For the full story see this week's issue of National Mortgage News.)

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HUD: Under CFPA Brokers Would Have a 'Vested Interest'

December 7, 2009

The creation of a Consumer Financial Protection Agency would ensure that loan brokers have a vested interest in the performance of mortgages they facilitate, according to HUD secretary Shaun Donovan. The CFPA could end "abusive" yield spread premiums and impose a "duty of best execution" on brokers to make sure they put borrowers into affordable mortgages," the Department of Housing and Urban Development secretary told a Consumer Federation of American conference. In addition, the broker's fee could be paid over time, instead of in a lump sum at the closing table giving brokers "skin in the game" the secretary said. The National Association of Mortgage Brokers top lobbyist Roy DeLoach said NAMB has a long-standing policy against abusive YSPs that act as incentives for brokers to steer borrowers into riskier, higher cost loans. He noted that NAMB supports a provision in a House-passed bill (H.R. 1728) that prohibits incentivized YSPs. As long as the broker's fee can be financed inside the interest rate, "we are supportive," he said. However, NAMB believes brokers should be paid at closing. In terms of best execution, the NAMB lobbyist noted that wholesale lenders, not brokers, underwrite and approve the loans. "The lenders have all the information we have before the loan goes to close," Mr. DeLoach said.

Genworth Prices $300MM Bond Offering

December 4, 2009

Genworth Financial Inc. has priced a $300 million seven-year senior note offering at an interest rate of 8.625% per year. Proceeds from the offering will be used by the Richmond, Va., life and mortgage insurer for "general corporate purposes." Deutsche Bank Securities Inc., Keefe, Bruyette & Woods Inc. and UBS Securities LLC are joint book-running managers for this offering, which is expected to close on Dec. 8, 2009.

Former ABN Amro Mortgage Chief Heads New Origination Unit

December 4, 2009

Willie Newman, the former executive vice president of ABN Amro Mortgage Group, has been hired to head up the newly created residential mortgage origination unit at Cole Taylor Bank, Rosemont, Ill. The new affiliate will have offices in several states and source loans from established relationships with mortgage brokers, remote retail origination sites and the bank's retail branches. Cole Taylor Bank said it does not plan to hold the originations in its portfolio but will sell them in the secondary market. "We expect that the addition of this new line of business will be an important new source of fee income for our organization and will provide additional earnings diversification," said Bruce W. Taylor, chairman of Taylor Capital Group Inc., the bank's parent company. "We believe that this is a significant opportunity for us, and we are fortunate to be able to attract an industry leader like Willie Newman for this new line of business." The company expects to start originating mortgage loans in the first quarter of 2010. During his time at AAMG, Mr. Newman also had the title of president of InterFirst Wholesale Mortgage Lending. At Cole Taylor, he will report to Randy Conte, Taylor Capital's chief financial and chief operating officer. Mr. Conte at one time was COO at AAMG.

Economist: 2008 Increase in FHA MIP Could've Helped

December 4, 2009

If the Federal Housing Administration had raised its annual mortgage insurance premiums by a modest amount in September 2008, its capital reserves would not have fallen below its statutory 2% minimum, according to a former Freddie Mac economist. "We found that a 20 to 25 basis point increase in the premium would have allowed the [FHA mortgage insurance] fund to meet its statutory capital requirement in fiscal year 2009," economist Ann Schnare told a congressional committee. FHA officials have asked Congress to raise the 55 bp cap on the annual premium so they can replenish the FHA fund's capital reserves. However, these same officials have not told Congress how high they want to raise it. "While we have not updated our analysis, we believe that something around" a 20 bp to 25 bp increase "would be appropriate today," she testified. She noted such an increase would bring FHA's pricing in line with Fannie Mae and Freddie Mac pricing. Ms. Schnare is a partner at Empiris LLC, a Washington economic consulting firm. In the 1990s, she was vice president for housing economics and financial research at Freddie Mac.

HUD Secretary Donovan Optimistic on Housing Recovery

December 4, 2009

The housing recovery is still at a fragile stage, but with inventories of unsold homes receding and home sales and prices rising "we may be finally seeing the light at the end of the tunnel," HUD secretary Shaun Donovan said. The Department of Housing and Urban Development secretary made his remarks at a Consumer Federation of America conference. He stressed to reporters afterwards that it is "far too early to say we are out of the woods." But he noted that completed foreclosures have declined three months in a row and the Obama administration's loan modification program is a contributing factor. Foreclosures are "still too high," he said, and the administration is considering several options to assist unemployed homeowners. "We will make an announcement relatively soon," he added. The HUD secretary noted that a Pennsylvania state mortgage assistance plan does not require lenders or private investors to absorb any of the principal reduction. "I would not support a process where there is no principal reduction by whoever owns the loan," he told reporters.

Two More Depart from MBA

December 4, 2009

The Mortgage Bankers Association is continuing to lose experienced staffers, confirming the departures of senior vice president in charge of commercial/multifamily, Jan Sternin, and one other. Leaving the trade group next week is Chris Oswald, who serves as director of state government affairs. Ms. Sternin will depart by late January. A spokeswoman for the trade group confirmed the departures but said MBA will hire replacements. The trade group, which hopes to turn a profit in the current fiscal year, is in the process of reorganizing parts of its government affairs division. It is in the process of selling its new Washington headquarters building but expects to take a loss on the sale.

Attorney: Lend America Wasn't Paying Off Liens on Refis

December 4, 2009

Lend America, which was banned from FHA lending on Monday, was refinancing certain customers without paying off their prior existing lien, according to veteran mortgage banking attorney Robert Lotstein. Mr. Lotstein, who has clients that did business with Long Island-based Lend America, said this has created a situation where customers received a new loan from the lender but without their existing lien being paid off. A managing attorney with Mortgage Banking Advisors PLLC, Mr. Lotstein said this has created a situation where some Lend America mortgagors "will get a call from their old lender asking where the payment is." The attorney said his mortgage banking and vendor clients informed him of the situation. He said he could not quantify how many Lend America refi customers might be having this problem. A spokesman for the company said the lender is trying to rectify the problem.

Mortgage Industry Continues to Tap Temp Workforce

December 4, 2009

The mortgage industry continues to shrink in terms of full-time employees as companies rely more on temporary workers to deal with servicing and origination demand. The U.S. Bureau of Labor Statistics reported that mortgage companies cut 3,700 full-time workers from their payrolls in October, including 1,700 mortgage brokers. Overall employment in the mortgage banker/broker sector fell to 255,500 in October from 259,200 in September. "You have a lot of temps being hired," a Mortgage Bankers Association executive said, noting that those figures do not show up in the BLS mortgage sector data. MBA associate vice president of industry analysis Marina Walsh said that mortgage firms are definitely hiring servicing-related workers but it is hard for them to justify hiring full-timers given the volatility in the market. "To forecast what it going to happen with originations and interest rates is very difficult," she said. Meanwhile, Friday's jobs report provided some good news with the national unemployment rate falling to 10% from 10.2% previously. BLS also revised downward the job losses in October and September - by a combined 150,000. (There is a one-month lag in BLS reporting of mortgage industry employment data.)

Sandler Sees Selective Opportunity in Agency Mortgage REITs

December 3, 2009

A steep yield curve could selectively keep earnings/dividends for agency mortgage real estate investment trusts above normal levels even though a rally in the sector is running out of steam, according to a report Wednesday by Sandler O'Neill & Partners LP, which is initiating coverage on the sector. "We view the agency mortgage REIT sector as attractive, particularly for conservative investors seeking to earn low- to mid-teen returns while avoiding the credit challenges encompassing financial stocks more broadly," the company said in its equity research report. "We believe the favorable environment will likely continue into next year but are concerned that the hint of a Fed tightening cycle and/or the phase out of the Fed's MBS purchase program could deflate the stocks' upward momentum in 2010," said the report by associate director Michael Taiano and associate Michael Sarcone. "Consequently, we recommend being selective within the group and buying those REITs that have more balanced models and cheaper valuations." The company covers six agency mortgage REITs and has "buy" recommendations on two of them: Annaly and Anworth, primarily based on the former's "more diversified and balanced model, along with its track record of managing through various interest rate cycles" and the latter's "more defensive strategy toward higher rates" as well as the fact that "its valuation is the cheapest among the group." Sandler O'Neill has "hold" recommendations on the other agency mortgage REITs it covers.

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Outstanding GNMA Balance Spikes by 46%

November 13, 2009

Mortgage banking firms are now servicing a record $843 billion in GNMA securities, a 46% spike from a year ago, reflecting the increasing popularity of both the FHA and VA loan programs. Moreover, when measured against the on-balance sheet portfolios of Fannie Mae and Freddie Mac, GNMA is now larger than both by tens of billions of dollars. According to figures compiled by National Mortgage News and the Quarterly Data Report, Wells Fargo & Co., continues to dominate the GNMA servicing market with a portfolio that has grown to $215 billion. Bank of America is second with $189 billion. (Figures as of September 30.) Combined, Wells and BoA have a GNMA market share of almost 48%, NMN found, dwarfing the rest of the industry.

Foreclosures Down for Third Straight Month

November 12, 2009

In the short-term, things might be looking up in the housing industry with the news that foreclosure activity is actually down for the third month in a row, according to the October 2009 U.S. Foreclosure Market Report from RealtyTrac. But that doesn't mean the foreclosure tide is turning, an executive from the company said. "The fundamental forces driving foreclosure activity in this housing downturn — high-risk mortgages, negative equity, and unemployment — continue to loom over any nascent recovery," said RealtyTrac CEO James Saccacio. Default notices, scheduled foreclosure auctions and bank repossessions were reported on 332,292 properties in October, down 3% from September but still up nearly 19% from a year ago. Despite a 26% decrease in foreclosure activity from September, Nevada continued to document the nation's highest state foreclosure rate. A total of 13,842 properties received a filing during the month, a 4% decrease from October 2008. Nevada default notices were down 10% from a year ago, and scheduled foreclosure auctions were down 6%. REO was up 8% from October 2008. A total of 85,420 California properties received a foreclosure notice, 1% less than September but still nearly 50% above October 2008. Default notices and scheduled foreclosure auctions in California increased 120% and 73% from October 2008, when California foreclosure activity was in the midst of a three-month trough after a law (SB 1137) requiring lenders to give distressed homeowners extra notification before initiating foreclosure took effect in September 2008. Florida was third with total of 51,911 Florida properties receiving a filing, down 6% from September and 4% from a year ago. It was the first year-over-year decrease in overall Florida foreclosure activity since July 2006.

Freddie Survey Finds Rates at Five Week Low Point

November 12, 2009

The average rate for a 30-year fixed-rate mortgage has dropped to its lowest level in five weeks, according to the most recent Freddie Mac Primary Mortgage Market Survey. "This comes at a time when house price declines are moderating and consumer demand for prime mortgages at commercial banks has picked up," said Frank Nothaft, Freddie Mac vice president and chief economist. The average 30-year FRM rate during the week ended Nov. 12 was 4.91%, down from 4.98% the week before and from 6.14% a year ago. The average 15-year FRM rate was 4.36%, down from 4.40% last week and 5.81% a year ago. The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage was 4.29%, down from 4.35% last week and 5.98% a year ago. The average one-year Treasury ARM rate was 4.46%, down from 4.47% a week ago and 5.33% a year ago. Average points were 0.7 for 30-year FRMs and 0.6 for the three other types of loans.

MBA Survey Shows Refinancing Applications Driving Market

November 12, 2009

Refinance applications made up more than seven of every 10 mortgage applications submitted for the week ended Nov. 6, the Mortgage Bankers Association Weekly Mortgage Applications Survey found. The market share of refinance applications, according to the survey, rose to 71.5% from 66.1% for the previous week. MBA said this is the largest share of refi applications since this past May, when 30-year fixed rates were near an historical low. The Market Composite Index, a measure of loan application volume, increased 3.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2.8% compared with the previous week. The Refinance Index increased 11.3% from the previous week but lower rates have not yet contributed to an increase in purchase applications. The seasonally adjusted Purchase Index decreased 11.7% from one week earlier. The share of adjustable rate mortgage applications fell to 5.5% for the week, from 6.1% one week prior. The average contract interest rate for 30-year fixed-rate mortgages fell to 4.90% from 4.97%, with points increasing to 1.03 from 1.01 (including the origination fee) for loans with an 80% percent loan-to-value ratio, the association reported. The average contract interest rate for 15-year FRMs was unchanged from the previous week, at 4.33%, while for one-year adjustable rate loans, rates increased by 2 BP to 6.85%. The MBA stopped disclosing index values with the July 31 data release. The group released this information a day later than normal because Wednesday this week was Veterans' Day. The MBA can be found online at http://www.mortgagebankers.org.

Canadian Single-Family Start Rate Softens

November 9, 2009

The seasonally adjusted annual rate of single-family housing starts in Canada softened slightly in the latest month but the volatile multifamily segment surged. "Despite a small decline in single-home starts in October, the level of single-home starts remains at its second highest level since October 2008," said Bob Dugan, chief economist, Canada Mortgage and Housing Corp. In total, the seasonally adjusted annual rate of single-family and multifamily starts combined was 157,300 during the month, up from 149,300 the previous month, according to CMHC.

GSEs Concerned Servicers Can't Honor Repurchase Obligations

November 9, 2009

Fannie Mae and Freddie Mac are becoming increasingly concerned that mortgage servicers will not be able to honor their obligations to repurchase bad loans. Fannie expects repurchase and reimbursement requests will remain high in 2009 and into 2010 and it already has a significant number of requests that have not been paid. "Due to the current housing and economic environment and the adverse impact on our servicers, we may be unable to recover outstanding loan repurchase and reimbursement obligations resulting from breaches of representations and warranties," Fannie says in its third-quarter financial statement. Fannie does not disclose the amount it collects from servicers. But Freddie Mac reported that its servicers have repurchased $2.7 billion in bad loans during the first three quarters of 2009, including $960 million in the third quarter. "Our exposure to seller/servicers could lead to default rates that exceed our current estimates and could cause our losses to be significantly higher than those estimated within our loan loss reserves," Freddie says in its third-quarter financial statement. Lenders that sell loans to Freddie and Fannie are required to make representations and warrantees that the loans comply with the government-sponsored enterprises' underwriting requirements. If the loans don't perform as expected and underwriting deficiencies are flagged, the lender is obligated to buyback the loan.

Economist: Recovery Has Set In, But More Bad News to Come

November 9, 2009

While a macroeconomic recovery has set in and will continue in 2010, Freddie Mac's chief economist Frank Nothaft said at the SourceMedia Loan Modification Conference in Dallas more bad news is coming for the mortgage market going forward. "We haven't seen the peak of the mortgage delinquency rates." Currently, he said, the serious delinquency rate — or number of loans 90 days plus late in mortgage payments among Freddie Mac loans — is the highest it has been since the 1930s. Compared to 0.5% in 2006, it spiked up to 5.4% in 2009, showing how the mortgage crisis has moved from the subprime to the conventional arena. Also, in 2005 the share of subprime loans serviced in the U.S. that defaulted represented 46%, or almost half, during the first half of 2009 that percentage dropped to 11%, with most defaulted loans being prime or alt-A. The economist noted, nonetheless, that there will be a recovery, however modest. The most recent unemployment data are not heartening and will continue next year at least during the first quarter, he said. However, Mr. Nothaft theorized that the aggressive monetary policy, the fiscal policy and the stimulus package benefits will lead to sustained recovery over time.

Despite Strong Originations, Lenders Continue to Shed Jobs

November 6, 2009

Even though residential originations swelled in the third quarter, the mortgage banking and brokerage sectors continued to shed jobs in September, according to new government figures. The mortgage banking industry employed 192,400 full-timers during the period, a loss of 1,800 positions from the previous month. (The mortgage numbers trail the national figures by one month.) Broker-related positions dropped 1% to 66,900 positions. (The numbers are exclusive of each other.) According to figures compiled by National Mortgage News and the Quarterly Data Report, residential lenders are on track to fund $2.1 trillion in loans this year, compared to $1.6 trillion last year. The Mortgage Bankers Association believes lenders will fund just $1.5 trillion in 2010, setting the stage for layoffs. Jay Brinkmann, chief economist for MBA, said lenders are holding off on making any personnel decisions until they have a clearer picture of what next year will look like in terms of production. If MBA's forecast proves correct, fundings will fall by 29% next year. However, firms are increasing their staff levels in servicing, loan modifications and compliance, which could buffer the layoff picture for mortgage professionals. During the height of the origination boom three years ago bankers and brokers employed more than 500,000 full time workers.

Meager Job Opportunities for RE Professionals

November 5, 2009

The next six months will bring meager job opportunities to real estate professionals, according to a new survey by Grant Thornton LLP. Grant surveyed real estate chief financial officers and senior comptrollers who said only 12% of their companies will increase hiring in the next six months and nearly two-thirds (63%) plan to reduce bonuses. Meanwhile, nearly two-thirds (64%) believe the U.S. economy will improve and only one-quarter (24%) expect their organization's financial prospects to get worse during the same time period. Companies also reported that besides reducing bonuses, real estate companies are trimming other employee benefits including health care and 401(k) matches.