Magazine article American Banker

Nonbank Mortgage Sector Experiences Surge in Hiring

Magazine article American Banker

Nonbank Mortgage Sector Experiences Surge in Hiring

Article excerpt

Byline: Brian Collins

WASHINGTON -- Independent mortgage banking and brokerage firms added a whopping 5,900 fulltime employees to their payrolls in June, according to a report issued Friday by the Bureau of Labor Statistics.

Employment in the nonbank mortgage and brokerage sector rose to 307,000, its highest level since 2008.

The surge in hiring came as some mortgage lenders reported record earnings for the second quarter and home sales took off.

"June was a breakout month for home sales, with both new and existing home sales reaching fresh post-recession highs. Still-low mortgage rates and favorable credit conditions also remain supportive for home sales," according to economists at Wells Fargo Securities in a July 29 Housing Chartbook report.

The positive results track with what mortgage firms have been reporting.

Stonegate, based in Indianapolis, originated $2.3 billion on residential mortgage loans in the second quarter, up 21% from the prior quarter.

Wholesale originations totaled $561.8 million in second quarter, up 31% from the first quarter, according to Stonegate Mortgage Corp. chief executive Jim Smith. "We posted another record earnings quarter," Smith

told investors during a conference call Thursday.

The giant mortgage servicer Nationstar Mortgage Holdings is on track for its best origination year since 2012, according to the company's chief executive Jay Bray said. "With reduced mortgage rates, the mortgage market continues to be strong," Bray said during Wednesday's conference. …

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