Mortgage Jobs Decrease Due To Housing Slowdown

Job cuts in the mortgage industry go hand-in-hand with decreased home buying and building numbers. With many companies trying to adjust to the stalling market, jobs seem to be dwindling.

Wells Fargo Home Mortgage, for instance, has eliminated several positions from across the country this year. The company has not specified exact numbers, but said that some employees not needed in the mortgage sector have been transfered to other business lines.

"Our long-standing commitment is to retain as much talent as we can," said Lynn Greenwood, a senior vice president for Wells Fargo.

Industry experts say that job cuts are unavoidable in a slowing market. Most analysts predict that there will be more cuts in the coming months.

Richard Bove, financial analyst for Punk Ziegel & Co., said that the downturn may become a painful experience for those in the mortgage industry. He noted that just this past week, three national mortgage companies have warned investors that they expect earnings to be negatively impacted for the quarter.

"Wells Fargo has a bigger commitment to housing than most any other company in the United States," Bove explained. "No matter how well-run they are, and Wells Fargo is one of the best-run companies out there, they simply won't be able to avoid this blow."

Bove disagrees with the company's insistence that the changes in jobs have been "minimal."

"They won't be minimal," he said. "I guarantee they won't be. Frankly, I'd be worried if they really were minimal, because they have to protect the health of the company at a time when the whole industry's sick."

Bove did say that Wells Fargo holds a competitve edge over other mortgage competitors, due to the diversity of the company.

"Maybe they won't find jobs in Des Moines, but maybe they'll find other Wells Fargo jobs," he said of the recent job eliminations in Des Moines, Ill.

According to the Mortgage Bankers Association, the slowdown is seen in the entire industry, affecting builders, lenders, real estate agents, brokers and credit companies.

David Seiders, chief economist for the National Association of Home Builders, said that he expects to see worse numbers in the next two quarters.

"There's no doubt the contraction is going to be larger," Seiders said.