The Warren Group has released its year end data for 2007 this week. What strikes me most is not the decline in residential sales or prices (down 5% from ‘06). Instead it’s the huge (and I mean huge) pull back in mortgage originations. Down 60% (60%!!!!) from the highs of 2003 and down 22% year over year.

Here are some of the numbers from the Warren Group:

Home purchase and refinance loans hit their lowest level since 2000 last year, statistics compiled by Banker & Tradesman publisher The Warren Group show. The number of mortgages for one-, two- and three-family homes and condominiums originated in the Bay State dropped from a high of more than 793,000 in 2003 to 325,925 in 2007, representing a decline of nearly 60 percent in loan activity over that five-year span. The number of residential loans also dropped 22 percent compared to the 416,342 mortgages originated in the Bay State in 2006.

With these kinds of numbers brokers are running for the doors at alarming speeds.

Mark McDonough left struggling National City Corp. six months ago to become vice president and sales manager in the mortgage department of Salem Five Bank. About one in five of his former mortgage industry colleagues has had to switch careers in recent months, he said.

“They’re opening bars, doing other types of sales, waitressing or working as nail technicians,” said McDonough.

Eastern Bank Senior Vice President of Mortgage Banking Stephen MacQuarrie said he personally knows “dozens” of people who have lost mortgage jobs as the foreclosure crisis and attendant credit crunch deepens.

Eastern itself had to lay off a few employees due to shrinking loan volume, MacQuarrie said, although the bank also has carefully and selectively hired a few experienced loan originators in the past four months.

On an upbeat note NextGen Realty is hiring!

Filed under: Boston Home Buying Tips, Boston Real Estate Trends and Statistics