Series of hiring non-bank mortgage bankers and brokers may end

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The long-term growth in the monthly increase in the number of nondepository jobs seen since last year changed somewhat in May.

Non-bank mortgage lenders and brokers’ jobs fell to 385,900 last month from a downwardly revised 386,500 in April, according to the latest figures from the Bureau of Labor Statistics.

The plateau in nondepository recruitment estimates, which were reported on Friday, followed sporadic reports of mortgage-related bank and non-bank reorganizations last week.

CFBank said Thursday that it is phasing out its direct-to-consumer mortgage business to focus on traditional retail; and Homepoint, a non-custodian that provides loans primarily through wholesale channels, unveiled a new service model focused on regional centers on Monday.

Shrinking margins and increasing market competition drove change at the bank. (Depositaries were generally more wary of being involved in the recent mortgage boom than non-depositaries.)

Meanwhile, broader US employment numbers, which reported less lag behind mortgage industry estimates, rose sharply in June, with US companies adding 850,000 jobs.

In addition, employment in residential construction, including specialist trade contractors, jumped by 15,200 in June. This suggests that jobs in the sector are developing “at a faster pace than in recent months,” according to Fannie Mae chief economist Doug Duncan.

Unemployment unexpectedly reversed its recent decline and rose slightly last month to 5.9% from 5.8%, but this was in part due to a significant increase in the number of people who voluntarily quit their jobs. (Unemployment could be underreported by 0.2% due to ongoing BLS classification error.)

These voluntary layoffs can be “a strong signal of a labor market recovery” as they suggest that these people are confident they can find more attractive jobs elsewhere, Duncan said in an e-mail statement.



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