DC- Although many believe the housing sector is largely to blame for the global recession, it’s also been an important source of new jobs as banks and other financial institutions struggle to dig out of the mess. Lenders such as Countrywide, WAMU/Chase/J.P.Morgan, are needing more help.

Most of the largest home mortgage providers are hiring to beef up their efforts to modify and collect on troubled loans. Other banks are adding loan officers and underwriters to keep up with demand from home owners eager to refinance at today’s low interest rates. Loan modification and refinancing activity has intensified partly because of the Obama administration’s housing rescue plan. This plan will affect tens of thousands of homeowners, potentially millions.

A major mortgage lender and servicer, GMAC Financial Services, is in the process of hiring more than 1,000 persons this year in its lending and servicing centers. About forty percent of the positions will be in new loan originations and underwriting and the others will be in collections, modifications, foreclosure, bankruptcy and other servicing duties.

In the meantime, J.P. Morgan Chase & Co., is hiring hundreds of collectors also, who deal with borrowers who are behind on payments, and loan mitigation negotiators, who work with troubled borrowers to help them restructure their loans to make them more affordable.

The administration’s plan to stem the tide of foreclosures is finally pushing the banks to greater action. Bank’s stocks are still down, but the government equity which has saved them, also comes with strings attached.