Mortgage companies shed 1,300 full-time employees in November despite strong refinancing activity, according to government figures released Friday.
The Bureau of Labor Statistics reported that employment in the mortgage banker/broker sector fell to 245,300 in November, from 246,600 in October. The October number was revised downward by 1,100 jobs.
Since November 2009, the industry's work force has declined by 4%.
Refinancings have been particularly strong the past six months, though activity is beginning to wane. During the six months through Nov. 30, the number of full-time employees has fluctuated by only 2,200.
This stability could end soon if refinancings slow and mortgage originations plummet in 2011.
Economists at the Mortgage Bankers Association have projected that residential originations will fall to $967 billion in 2011 — the lowest level since 1997 — from $1.5 trillion in 2010.
The government report showed that the economy created 103,000 jobs in December, up from 71,000 in November and 210,000 in October.
(A one-month lag occurs in the reporting of mortgage banker/broker employment data.)
