Job security in the mortgage broker industry

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The grass often seems greener on the other side, but when it comes to mortgage industry in Canada the opposite is true – at least when it comes to job security.
Big banks south of the border have been axing mortgage jobs by the thousands over the last year. In the second quarter alone, more than 19,000 mortgage jobs were lost.
JPMorgan Chase, America’s largest bank, is planning to cut 3,000 more jobs than it had originally forecast, according to a New York Post article.
The cuts will be focused on the company’s mortgage banking and card services divisions. Card services will lose about 2,000 jobs, while the remaining 1,000 will come from the home loan division. Those cuts bring JPMorgan’s total job eliminations up to 27,000 in the last two years.
The new job cuts were announced by Gordon Smith, head of JPMorgan’s consumer banking division, at a presentation in Boston, the Post reported. Smith said the company had seen “explosive growth” in mobile banking – which means the bank needs fewer personnel as more customers handle transactions online.
  • Ron Butler on 2014-11-13 12:31:01 PM

    I think their will be more job cuts at Canadian Banks, Scotia was just the beginning. Brian Porter timing was smart, he was the first to do what all the banks will eventually do: eliminate internal staff positions. Keep the client facing staff in place but use technology and plain old "work harder for the same pay" to pick up the slack on the jobs cuts.

    Over the last two decades banking and financial services were areas of job growth in Canada. I will bet the next two decades will see the opposite. Tech, off-shoring and forced productivity improvement. Tell your kids to skip the MBA and focus on designing the next "Call of Duty".

  • JT on 2014-11-15 5:30:08 PM

    I agree completely Ron. However, the Banks won't be the only ones laying people off. Mortgage lenders are facing increasingly tighter margins and will also be looking for further efficiencies to remain competitive with the banks. I wouldn't be surprised if we see some layoffs and an increase of outsourcing of underwriting and servicing departments by some of the monolines.

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