The meltdown of the mortgage industry is beginning to ebb, but the industry will remain 'a shell of its former self', a report has claimed
The meltdown of the mortgage industry is beginning to ebb, but the industry will remain 'a shell of its former self', a report has claimed.
A report from Mortgage Daily has indicated that the number of mortgage company failures is declining, though casualties in the sector continue.
The company's mortgage industry forecast points to 83 failures or closings of mortgage companies in 2012. The number is up from 32 in 2006, before the financial crisis. But the blows to the industry are abating, with the number of company failures down from 211 in 2010.
The company also forecast that delinquencies will begin to trend lower.
"Prior to 2007, delinquency had been running under 5%. But delinquency turned higher and peaked in 2009, though it has since retreated," Mortgage Daily said.
Delinquencies hit their peak of 9.47% in 2009, and have shrunk to 7.25% as of March 31 of this year.
While some sectors of the industry are improving, however, the company gave a grim outlook for employment. Mortgage Daily pointed out that nearly half of employees in the mortgage industry had lost their job over the past decade, and predicted that losses were set to continue.
"While home purchases are likely to drive up demand for employees, declining refinances will more than offset those gains. In addition, as delinquency retreats, servicers will eliminate jobs. Mortgage Daily predicts a decline in staffing over the next year," the company said.