Mortgage lenders cut 86,071 jobs last year and more layoffs could be ahead as rates on hundreds of thousands of adjustable-rate mortgages reset higher this year, Reuters reported. The industry has been hit hard by a surge in loan defaults as homeowners face falling housing prices and tighter credit markets.

According to data from MortgageDaily.com, which analyzed layoffs and hirings at 205 mortgage companies, California had the most job cuts, with a net loss of 15,933 mortgage jobs, or 18.5 percent of the nationwide total. Countrywide Financial Corp. had the most layoffs of any lender last year, with a net loss of 11,665 jobs.

Meanwhile, JPMorgan Chase & Co., the third-largest U.S. bank, added a net 4,465 jobs. Wells Fargo & Co. also has said that it plans to add market share as weaker rivals struggle.