New Lender Survey Suggests QM Will Impact Credit Standards and Operational Costs

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Mortgage Lender Sentiment Survey

Fewer Lenders Report Easing of Credit Standards

March 2016

Fannie Mae's first quarter 2016 Mortgage Lender Sentiment Survey, conducted in February, shows that the share of mortgage lenders reporting easing credit standards over the prior three months fell for the second straight quarter. Also, the share of lenders who expect to ease credit standards over the following three months fell from last quarter for all mortgage types. The survey also shows the net share of lenders reporting purchase mortgage demand for all loan types decreased significantly from a year ago. Lenders expecting greater refinance mortgage demand over the following three months increased dramatically since last quarter. In addition, more lenders expect an increase in their sales of mortgage servicing rights, continuing the upward trend from last quarter.

“This quarter's Mortgage Lender Sentiment Survey results reflect recent market volatility. Lenders anticipate a pickup in refinance demand in light of the decline in interest rates this year, but report a slowdown in purchase demand perhaps because of a seasonal component,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The survey suggests a slower pace of easing, as the net share of lenders who reported that they have eased credit standards overall over the past three months remained positive but has declined since the third quarter of last year. Lender expectations for easing over the next three months have also moderated. Many lenders also indicate a likely increase in the sales of mortgage servicing rights, possibly to compensate for these countervailing pressures on profits and to take advantage of current favorable pricing in the market.”

Lenders who say their credit standards have eased or tightened over the past threee months

Lenders who say if refinance demand had gone up or down over the past threee months

On this webpage you will find a news release with highlights from the survey results, the Q1 2016 data summary highlighting key attitudinal indicators, a detailed research report, the questionnaire used for the Q1 2016 survey, and FAQs providing additional information about the survey.

Mortgage Lender Sentiment Survey Archive
Click here for an archived list of Fannie Mae's Mortgage Lender Sentiment Survey results.