Ripple effect of a bad economy
According to the Mortgage Bankers Association, there were over 505,000 mortgage employees in America in 2006. Today, they say there are less than 250,000 mortgage employees.
This marks the lowest number of mortgage employees in 14 years.
The real estate industry often looks at National Association of Realtors membership levels as an indicator of the size of the Realtor workforce which in recent years was 1.4 million members which is currently just above 1 million members.
With shrinking in both sectors, the employment levels in all of housing has taken a shocking dip.
Are temporary employees the reason?
Some will only read the title of this story and assume that temporary employees are the reason for such a drastic drop, but even after Wells Fargo ditched nearly 2,000 of their temporary employees brought on to help with volume of refinances this year, that is not the reason for the sharp decline.
The mortgage workforce has mostly been impacted by a devastated economy, new licensing requirements as well as tightened lending.