Mortgage applications in 2006 are running at a pace that is about one-third lower than the year-round average for 2003. One-third fewer mortgages should mean that revenue is roughly one-third lower. This would presumably translate into a substantial drop in employment in the industry, but not according to the Washington Post. Relying on industry sources, the article explains that mortgage bankers are cutting staff through attrition or simply allowing commision based pay to fall with the number of mortgage applicants. This could be the case for the moment, but it's hard to believe that employment will not adjust at least partly to the drop of revenue. Industries never like to tell reporters that business is bad and layoffs are soaring. It would have been a good idea to talk to an analyst not connected to the industry.
Jobs Without Money? Employment in the Mortgage Banking Industry
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
