WASHINGTON, July 24, 2014 /PRNewswire/ -- Fannie Mae
today released the inaugural results of its quarterly Mortgage
Lender Sentiment Survey. This new industry research initiative
tracks insights into current lending activities and market
expectations among senior mortgage executives at Fannie Mae's
lending institution partners.
Results collected during the first two quarters of 2014 show
greater consumer mortgage demand in the second quarter of the year,
a steady and positive near-term mortgage demand outlook, and
divergence between larger and smaller lenders in underwriting
credit standards.
"This survey of lender attitudes presents current market
information that may provide key inputs for all industry
participants, including lenders and investors," said Doug Duncan, senior vice president and chief
economist at Fannie Mae. "We have been conducting our monthly
National Housing Survey for four years to gauge consumers' views
and intentions, which affect the demand side of housing. This new
survey of mortgage lenders serves as an indicator of supply-side
conditions by assessing their current and expected outcomes. We
believe that these two surveys, representing the views of both
consumers and lenders, will complement each other to provide deeper
market insights."
Our lender survey results show that consumer purchase mortgage
demand has picked up from the first quarter to the second quarter
of this year. Regarding the near-term outlook, lenders surveyed
continue to report positive expectations, although expected growth
remains modest.
"These results are broadly in line with other major indicators
released recently, including the pickup in home sales in May, and
also support our expectations of a steady but unspectacular rebound
for housing during the second half of this year," said Duncan.
Additionally, the comparison between responses gathered from
Fannie Mae's Mortgage Lender Sentiment Survey and National Housing
Survey (among consumers) shows that mortgage executives are
significantly more likely than consumers to say it is difficult for
consumers to get a mortgage today. In addition, lenders' responses
to questions regarding credit standards pointed to net tightening
among smaller and mid-size lenders, but net easing among larger
lenders. Changing regulatory requirements were cited as the most
common reason for tightening credit among all lenders surveyed.
"Lenders have been trying to find ways to manage their
operational costs and meet new regulatory rules," said Duncan.
"They appear to feel cost constrained and, thus, may be applying
more conservative standards in their lending practices."
MORTGAGE LENDER SENTIMENT SURVEY HIGHLIGHTS
Differences in Economic and Housing Sentiment Between Senior
Executives and General Consumers
- Compared to general consumers, senior mortgage executives are
more optimistic about the overall economy and more pessimistic
about consumers' ability to get a mortgage today.
Improved Consumer Purchase Mortgage Demand Over the Prior
Three Months
- Consumer demand reported for single-family purchase mortgages
over the prior three months went up on net from Q1 to Q2 2014.
Steady and Positive Consumer Purchase Mortgage Demand Outlook
for the Next Three Months
- Senior mortgage executives expect consumer demand for
single-family purchase mortgages for the next three months to go up
on net.
Divergence in Credit Standards Between Larger Lenders and
Others
- Smaller and mid-size lenders are more likely than larger
lenders to say their credit standards tightened over the prior
three months and are more likely to expect them to tighten during
the next three months. Larger lenders, on the other hand, are more
likely to say their credit standards eased over the prior three
months and they expect standards to ease further during the next
three months.
Stable Mortgage Execution Outlook
- As in Q1, most lending institutions surveyed in Q2 2014
reported that they expect to maintain their post mortgage
origination execution strategies for the next three months.
Stable Mortgage Servicing Rights (MSR) Execution
Outlook
- As in Q1, the majority of lenders surveyed in Q2 2014 reported
that they expect to maintain their Mortgage Servicing Rights (MSR)
strategies for the next three months.
Improved Profit Margin Expectations for the Next Three
Months
- Lenders' profit margin outlook has improved from Q1 to Q2 2014,
as more lenders expect their profit margin over the next three
months to stay the same and fewer lenders expect their profit
margin to decrease.
This first-of-its-kind Mortgage Lender Sentiment Survey
conducted by Fannie Mae polls senior executives of its lending
institution customers on a quarterly basis to assess their views
and outlook across varied dimensions of the mortgage market. The
first quarter 2014 Fannie Mae Mortgage Lender Sentiment Survey was
conducted between March 4, 2014 and
March 18, 2014. The second quarter
survey was conducted between May 28,
2014 and June 8, 2014.
Interviews were conducted by Penn Schoen Berland in coordination
with Fannie Mae. For detailed findings from the 2014 first quarter
and second quarter surveys, as well as survey questionnaires and
other supporting documents, please visit the Fannie Mae Mortgage
Lender Sentiment Survey page on fanniemae.com. Also available on
the site will be special topic analyses, which focus on findings
and analyses of important industry topics.
Opinions, analyses, estimates, forecasts, and other views of
Fannie Mae's Economic & Strategic Research (ESR) Group included
in these materials should not be construed as indicating Fannie
Mae's business prospects or expected results, are based on a number
of assumptions, and are subject to change without notice. How this
information affects Fannie Mae will depend on many factors.
Although the ESR Group bases its opinions, analyses, estimates,
forecasts, and other views on information it considers reliable, it
does not guarantee that the information provided in these materials
is accurate, current, or suitable for any particular purpose.
Changes in the assumptions or the information underlying these
views could produce materially different results. The analyses,
opinions, estimates, forecasts, and other views published by the
ESR Group represent the views of that group as of the date
indicated and do not necessarily represent the views of Fannie Mae
or its management.
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home.
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SOURCE Fannie Mae