Thursday, April 07, 2011

Mortgage Lenders lay off workers as refinance activity declines rapidly

by Bill McBride on 4/07/2011 10:37:00 PM

From Scott Reckard at the LA Times: Home lenders shed workers as mortgage rates climb

A rebound in mortgage rates from last year's near-record low has reduced consumer demand for home loans and refinancings, leading Wells Fargo & Co. to join other industry stalwarts in laying off loan processors and related workers.

The San Francisco bank, the nation's No. 1 mortgage lender, has handed pink slips to about 1,900 workers who had processed loans generated both by Wells' mortgage unit and by independent brokers, a spokesman said Thursday. ... Notifications went out March 23 telling affected workers their jobs would end in 60 days ...
Maybe they can have these workers help with modifications and foreclosures ...

It doesn't take much of an increase in rates for refinance activity to slow sharply.

The MBA refinance index has fallen sharply since last October, suggesting refinance volumes have fallen about 60% - as 30 year mortgage rates increased from 4.21% in October to the current 4.93%.

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