Article: Staffing for a Possible Slowdown in Originations.(News)

Byline: Kate Berry

WASHINGTON-Home lenders face some tough staffing choices, with business expected to drop 40% to 60% next year.

Optimistic companies will consider holding on to employees in the hope that a pickup in home-purchase loans will offset a probable decline in refinancings.

Pessimists will proactively cut back, starting with temps and contractors, discounting an expected extension in the first-time homebuyer tax credit.

If the lenders strategize correctly, they stand to either make or save themselves a lot of money. But there are serious downsides to being wrong. For example, if interest rates rise and volume plummets, the ...

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