According to The Kobeissi Letter, nonbank real-estate lender employment has fallen by 38% from its 2021 peak, with staff now at around 180,000, marking near-century lows (source: The Kobeissi Letter, May 14, 2025). Despite this contraction, nonbanks dominate the 2024 mortgage origination market, leading the top three spots by volume. For crypto traders, this contraction signals potential liquidity shifts and risk appetite changes in broader financial markets, as traditional real estate lending faces structural challenges. Historical patterns post-2006 housing crisis suggest that such employment declines can foreshadow credit tightening, which may drive increased volatility and capital flows into alternative assets like Bitcoin and stablecoins. Monitoring these cross-sector shifts is crucial for adjusting crypto trading strategies.

According to The Kobeissi Letter, the number of employees at nonbank real-estate lenders has dropped by 38% from its 2021 peak, reaching approximately 180,000—near the lowest level this century. In 2024, nonbank lenders dominated the mortgage origination space, with the top three mortgage lenders by originations all being nonbanks (source: The Kobeissi Letter, May 14, 2025). This significant contraction signals tightening credit and liquidity conditions in traditional real estate markets, which can drive increased institutional and retail interest in crypto-based lending platforms and DeFi protocols as alternative financing solutions. Crypto traders should monitor shifts in traditional lending employment and origination trends, as these can indicate broader credit cycles and potential capital flows into digital assets.