Thousands of mortgage lenders laid off due to rising interest rates
Within six months, one of the busiest jobs in the mortgage industry went silent.
“From the start, it was just madness,” Charlotte loan officer Anna Forbis said.
At a time when interest rates were at historic lows, demand for homeowner refinance skyrocketed.
“Oh, that was crazy. My pipeline was huge, and it was all about refinances, so there was this big push to close at least 30 loans a month at least,” Forbis said.
Last year, Forbis was a small piece of the puzzle that made up a local corporate mortgage office in Charlotte.
“I am the person who speaks with the buyer throughout the process,” Forbis said. “I collect paper.”
Fast forward to now, rising interest rates have made the refinancing industry almost non-existent.
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“And that was a big part of the last year or two for the mortgage industry, but that’s been eliminated. Everyone who’s going to refinance is already at a rate below the current market rate,” John said. Connaughton, professor at UNC-Charlotte Belk College of Business Economics.
Now thousands of mortgage lenders are licensed across the country.
In Charlotte, Wyndham Capitol Mortgage is cutting 48 jobs. Real Genius, another mortgage lender, is expected to eliminate 74 positions.
Wells Fargo, the county’s largest home lender, says it’s also shrinking the department.
“The home loan moves are the result of cyclical changes in the broader home loan environment. The employees impacted by these changes have each played a critical role in our success. We conduct the moves in a transparent and thoughtful manner and provide a assistance, such as severance packages and career advice.In addition, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo. -word of Wells Fargo.
“They categorize individuals into specific roles and the way we like to think of them in the mortgage world is that they’re on an assembly line,” said Brooke Marin, co-owner of Motto Mortgage Metro.
Inside the Dilworth office, Marin said she had received an increase in inquiries, not for loans, but for jobs.
“A lot of them called and said, ‘Hey, I got released via zoom with a hundred other people and I never want this experience for my family again,'” Marin said.
The small, family-owned brokerage firm is no stranger to new hires. Anna Forbis jumped ship to join the company last year.
“I was newly hired at the time; I would definitely be on the chopping block for sure,” Forbis said.