The payrolls of the nonbank mortgage bankers and brokers cumulatively increased by roughly 2% on the monthly chart and 9% on the yearly chart, divulges the latest report of the Bureau of Labor Statistics. While the expectations were rather mute, given the traditionally lackluster buying numbers in fall, many nonbank mortgage houses are hiring at a decent rate, believing that it is the time to execute ambitious plans.
For instance, Mr. Cooper proposes to hire 2,000 employees. AmeriSave Mortgage Corp. is looking for the same number of recruits. As early as in July, Freedom Mortgage had declared that it was looking to hire 3,000 workers.
Before the spread of the pandemic, American employment stood at 4%. In July, the unemployment rate (adjusted) rose to 11.2%. This is the highest since the Depression years when the unemployment rate coasted around 10%.
The housing market has been relatively cocooned from the dismal projections that other industries are giving out. Yes, low rates are a definite buffer. Having said this, the current level of unemployment could hamper the consumers’ purchasing power and their capacity to qualify for loans, says Odeta Kushi, deputy chief economist at First American Financial Corp.
In his words, “Housing has remained immune due to demographic demand and the Fed policy keeping rates low, but it cannot remain immune to the impact of homeowners having less household income.”