WASHINGTON, March 18, 2015 /PRNewswire/ -- Fannie Mae's
first quarter 2015 Mortgage Lender Sentiment Survey™ reveals an
improving outlook among mortgage lenders regarding their lending
activities and market expectations. Compared with last quarter and
the same period last year, this quarter's results show that more
lenders expect mortgage demand and their profit margin to grow over
the next three months. Results also show that credit tightening
observed last year has continued to trend down gradually moving
into 2015. For GSE-eligible purchase loans, 71 percent of lenders
surveyed say they expect purchase mortgage demand to go up over the
next three months, compared with 59 percent reported during the
same quarter last year. Additionally, 41 percent of lenders
reported increased profit margin expectations, compared with 21
percent during the same quarter last year.
Improving economic conditions and a more upbeat outlook for
lender profit margins appear to be fueling increased optimism among
mortgage lenders at the start of 2015. "The first quarter results
mirror a similar trend among American households, as shown in our
recently released National Housing Survey™ data," said Doug Duncan, senior vice president and chief
economist at Fannie Mae. "These results are consistent with our
view that an improving economy, strengthening employment, and
increasing consumer confidence should support a modest housing
expansion in 2015, after an uneven and disappointing year for
housing activity in 2014."
MORTGAGE LENDER SENTIMENT SURVEY HIGHLIGHTS
Differences in Economic and Housing Sentiment Between Senior
Executives and General Consumers
- Compared with the general population of consumers, senior
mortgage executives continue to be more optimistic about the
overall economy and more pessimistic about consumers' ability to
get a mortgage today.
Positive Consumer Purchase Mortgage Demand Outlook for the
Next Three Months
- After gradually trending down throughout 2014, lenders'
purchase mortgage demand expectations for all types of loans (GSE
eligible, Non-GSE eligible, and government loans) increased this
quarter across institution sizes and types (mortgage banks,
depository institutions, and credit unions), although there might
be seasonal influences.
Gradual Credit Standards Easing
- This quarter, across all loan types, the share of lenders
reporting credit easing is higher than the share of lenders
reporting credit tightening. Mortgage banks continue to be more
likely than depository institutions to report credit easing.
Stable Mortgage Execution Outlook
- Most institutions reported that they expect to maintain their
mortgage strategy in relation to secondary market outlets over the
next year. Among larger institutions and mortgage banks, more
lenders reported expectations to decrease rather than increase the
share sold to GSEs.
Stable Mortgage Servicing Rights (MSR) Execution
Outlook
- The majority of institutions reported that they expect to
maintain their Mortgage Servicing Rights (MSR) execution strategies
over the next year. Among mortgage banks, more lenders reported
plans to retain rather than sell their MSRs.
Positive Profit Margin Outlook for the Next Three
Months
- Lenders' profit margin outlook has improved significantly from
last year, in particular among larger lenders, with the share of
lenders expecting their profit margin to go up over the next three
months increasing significantly this quarter.
The 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 Fannie Mae first quarter
2015 Mortgage Lender Sentiment Survey was conducted between
February 4, 2014 and February 16, 2015 by Penn Schoen Berland in
coordination with Fannie Mae. For detailed findings from the 2015
first quarter survey, 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
are 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 or
survey respondents 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 or survey respondents as of the date indicated and do
not necessarily represent the views of Fannie Mae or its
management.
Fannie Mae enables people to buy, refinance, or rent
homes.
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SOURCE Fannie Mae