Mortgage industry job cuts surpass 38,000

Mortgage industry job cuts surpass 38,000

It’s an employment collapse that threatens to rival the massive layoffs in the airline industry that followed the Sept. 11, 2001, terrorist attacks, when some 100,000 employees lost their jobs.

That statement alone caught my eye and thought that this would merit a good discussion.

It's been common knowledge for the past several months that the subprime sector of the mortgage industry was begining to fail as well as delinquency rates soaring at record rates and foreclosures becoming more of a reality for a lot of people.

“It’s far from over,” said Bart Narter, a senior analyst with Celent, a Boston-based financial research and consulting firm. “The subprime lending collapse will continue to ripple through the financial sector.”

This is effecting everyone from bank tellers to construction workers. With this i have a few questions for those interested.

Can the market turn around, and if it can how?
What types of variables are responsible to make it productive again?
Should the government (state and federal) step in to curve the market a little more aggressively?

I personally think this may be the begining of a much bigger fallout. If lenders are sketchy about forking out funds for me to purchase a home how are they going to turn profits around for themselves? Which means there are going to be less and less homeowners and more and more land lords.... the thought chills me.

I certainly thought that i would get a lot more feed back. I mean 38,000 plus jobs were cut in a matter of weeks and no one here even lifts an eyebrow?

You guys must have some imaculate job security. I know in my city of 80,000 people even jobs at McDonalds are scare and business's (mostly small business) are dropping like flies.

reply to post by Nathabeanz


you loose 38k well paying jobs to be replaced by 60k low paying jobs in the service industry and the final fed report will say unemployment down, employment up .. they never mention the value of the job.

For some reason I feel the need to bring to mind that Edgar Cyce predicted a major economic fall out in the year 2007. Im not one for predictions, but he is the only to ever fascinate me.

Anyways. Bankers loosing their jobs does not bother me, as I hate bankers... even the tellers. Especially the damn tellers. And the wench that has conversations with her friend when she should be working as fast as possible at the drive up deposit, so that we don't have to wait in line for an hour. Is there anything GOOD about banks? Well the 1% intrest on my savings is nice.

My sister in law is a loan officer and is going to be losing her job. Plus when the housing boom was in full swing, she talked her husband into getting into the same business. Now they're both looking at being in financial trouble. I knew this was going to happen. I feel bad for them especially since they have a little kid they have to support. I'd hate to see them lose the house they worked so hard for.

Originally posted by Rockpuck
you loose 38k well paying jobs to be replaced by 60k low paying jobs in the service industry and the final fed report will say unemployment down, employment up .. they never mention the value of the job.

That sounds like what's happening here where I live. There are TONS of low end jobs, the kind of stuff that you work at while going to school, or if you have no ambition, like fast food, service, etc, but there isn't much in the skilled labour areas. Our unemployment is at a record low, but more and more people are being underemployed, working at menial jobs because they cannot get what they are qualified to do.

On top of that, our housing prices are going through the roof. You cannot buy a house here for under $300k. I'm not really sure what needs to be done, but as I posted about 5 minutes ago in another financial type thread, the whole system is a mess, and things are going to get worse. I have no idea what can be done about it, either.

True, I been in the mortgage business for a while now and I been seeing people around me dropping like flies over the past year. I'm one of the few last man standing. Time for me to get out before I sink w/ the captain.

reply to post by amfirst


Sorry about your situation, Amfirst. Good luck on your new life? Anything you can fall back on?