Despite new homes sales showing historical lows, and the housing market not really in a cheer, banks are hiring hundreds of loan originators, getting ready for what they believe will be a significant pick-up in lending. JPMorgan Chase, one of the nation’s largest lenders, is in the midst of hiring 1,200 mortgage officers. “We may not be inundated with applications tomorrow, but we are confident the need will be there,” said Christine Holevas, a spokeswoman for JPMorgan Chase. Housing experts, however, warn that overall mortgage lending is expected to remain flat, largely due to a decline in refinancing.
Loans for home purchases should steadily increase over the next two years to $916 billion, up from an expected $725 billion this year, according to forecasts by the Mortgage Bankers Association. But refinancings should plummet to $474 billion in 2012, down from $717 billion this year. Citizens Bank, meanwhile, is also growing its mortgage operations. The Providence, R.I.-based bank, which operates in a dozen states, increased its lending by 167% in 2009, compared to the year before.
Source: Loss Mitigation Institute LLC