With an increase of 8.8% or 6,000 jobs since last month, total employment stands at 73,100. Despite the economic uncertainty brought about by the COVID-19 pandemic, October marked one of the largest increases of the year in terms of job growth.
The report, which was released by the National Mortgage News (NMN), is based on data gathered from the Bureau of Labor Statistics’ Current Employment Statistics program. The non-bank mortgage sector has seen an overall average monthly job growth of 2.4% since March, which is indicative of the sector’s resilience in uncertain times.
The majority of the new jobs were created in the loan servicing sector, with 4,700 new positions added since September. This is a significant increase compared to the 2,400 positions that were added in the previous month. Non-bank lenders also saw an increase in hiring, with 1,200 new jobs added in October.
The new jobs created this month have been supported by the strength of the housing market despite the pandemic. According to the NMN, there was a 11.6% increase in total single-family loan originations year-over-year in the third quarter. Mortgage companies are offering more competitive rates and loan programs, which has created more opportunities for potential homebuyers.
Another factor that has contributed to the growth in non-bank lending is the increasing demand for alternative loan products. Government loan guarantors such as Fannie Mae and Freddie Mac, as well as government agencies like HUD and FHA, have steadily increased their purchases of non-bank loans. Furthermore, new fintech startups have entered the space, providing homeowners with additional financing options.
Given the state of the economy, the job growth in the non-bank sector is an encouraging sign. The October report indicates that the industry is showing signs of continued growth despite the pandemic. The increase in jobs is also a testament to the resilience of the US housing market. Homebuyers are being offered more competitive rates and loan programs, while new startups are providing additional financing options. As the economy continues to recover, it is expected that the non-bank sector will continue to grow.
The October 2020 Non-Bank Mortgage Jobs Report provides an optimistic outlook on the housing market and the non-bank sector. Despite the economic uncertainty caused by the pandemic, the non-bank mortgage sector has seen remarkable job growth over the past few months. With loan servicers creating the most new jobs in October and loan originators adding 1,200 jobs, it appears that the sector is regaining its strength and adapting to the changing climate. Additionally, with more competitive rates and loan programs available to homebuyers, as well as the increasing demand for alternative loan products, the sector is showing no signs of slowing down. Ultimately, the report is an encouraging sign that the non-bank sector is on track to continued growth in the coming months.
This article was contributed on Aug 19, 2023
