NEW YORK (Reuters) - Countrywide Financial Corp <CFC.N>, New Century Financial Corp <NEWCQ.PK> and other mortgage lenders cut 86,071 jobs last year as the U.S. housing market deteriorated, data released Monday show.
By Jonathan Stempel
NEW YORK (Reuters) - Countrywide Financial Corp <CFC.N>, New Century Financial Corp <NEWCQ.PK> and other mortgage lenders cut 86,071 jobs last year as the U.S. housing market deteriorated, data released Monday show.
California was hit hardest by the cuts, with a net loss of 15,933 mortgage jobs, or 18.5 percent of the nationwide total, according to the data from MortgageDaily.com.
The state is home to Countrywide, which is based in Calabasas, as well as to New Century, an Irvine-based subprime mortgage lender that filed for bankruptcy protection in April.
!ADVERTISEMENT!Mortgage lenders have slashed staffing as losses have mounted from a surge in customer defaults. Falling housing prices and tighter credit markets have left thousands of homeowners unable to refinance their mortgages and stay in their homes.
Many mortgage experts expect further job losses in 2008 as rates on hundreds of thousands of adjustable-rate mortgages reset higher, though MortgageDaily.com publisher Sam Garcia expects the pace of layoffs to slow.
Countrywide made the most job cuts in 2007, eliminating a net 11,665 jobs, Dallas-based MortgageDaily.com said.
Other cuts totaled 6,628 at American Home Mortgage Investment Corp <AHMIQ.PK>, 5,948 at First Magnus Financial Corp, 5,200 at New Century, 4,470 at GMAC LLC's Residential Capital LLC unit, and 3,580 at Washington Mutual Inc <WM.N>, MortgageDaily.com said.
Melville, New York-based American Home and privately held First Magnus of Tucson, Arizona, filed for Chapter 11 bankruptcy protection in August, while New Century filed in April.
A consortium led by private equity firm Cerberus Capital Management LP <CBS.UL> owns 51 percent of GMAC, while General Motors Corp <GM.N> owns 49 percent.
The job losses in 2007 would have been greater had JPMorgan Chase & Co <JPM.N>, the third-largest U.S. bank, not added a net 4,465 jobs, MortgageDaily.com said.
Larger, relatively strong lenders such as Wells Fargo & Co <WFC.N> have said they expect to add market share as weaker rivals retrench.
MortgageDaily.com said it analyzed layoffs and hirings involving at least 50 people at 205 mortgage companies.
(Editing by Gerald E. McCormick)
