Independent Mortgage Bankers Squeezed by Falling Production
The end result could be job losses in 2014
A survey of independent mortgage bankers conducted by analytics firm Richey May & Co. (Colorado, USA - TIAG) shows overall mortgage production activity fell in the third quarter, prompting lenders to silently brace for a period in which expenses could outstrip revenue enough to prompt job cuts.
The latest data from Richey May shows a cooling in the market, with overall mortgage production down 12.4% from the second quarter as refinancing activity continues to plummet — falling 42% during the third quarter alone.
Independent mortgage bankers are searching for their new bottom line, Trevor Reinhart, manager of advisory servicers at Richey May told HousingWire in an interview. The end result, he notes, is a situation in which the market by mid-2014 may see lenders dealing with rising expenses tied to compensation and compliance and falling production volume — two trends that will result in potential staffing reductions.
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