A larger share of lenders say that they have eased lending restrictions in the third quarter of 2017
A larger share of lenders say that they have eased lending restrictions in the third quarter of 2017.
Fannie Mae’s Mortgage Lender Sentiment Survey shows a new high for the net share of lenders who say they have eased rather than tightened credit standards across all loan types.
"Lenders’ comments suggest that competitive pressure and more favorable guidelines for GSE loans have helped to bring about more easing of underwriting standards for those loans,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
The main reason for the easing was competition from other lenders with the share of lenders citing this increasing to a record high for a third consecutive quarter.
Lenders remain confident in mortgage market growth over the coming three months but the reported demand for purchase loans has fallen to its lowest third quarter share in two years.
More lenders on net reported declining demand for refinance mortgages over the prior three months, which has been an on-going condition witnessed this year, despite a slight improvement compared with the prior quarter.
“Market competitiveness also led to the fourth consecutive quarter in which lenders’ net profit margin outlook deteriorated,” added Duncan. “The share of lenders citing competition from other lenders as the key reason for a negative profit market outlook rose to a new survey high.”
Fannie Mae’s Mortgage Lender Sentiment Survey shows a new high for the net share of lenders who say they have eased rather than tightened credit standards across all loan types.
"Lenders’ comments suggest that competitive pressure and more favorable guidelines for GSE loans have helped to bring about more easing of underwriting standards for those loans,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
The main reason for the easing was competition from other lenders with the share of lenders citing this increasing to a record high for a third consecutive quarter.
Lenders remain confident in mortgage market growth over the coming three months but the reported demand for purchase loans has fallen to its lowest third quarter share in two years.
More lenders on net reported declining demand for refinance mortgages over the prior three months, which has been an on-going condition witnessed this year, despite a slight improvement compared with the prior quarter.
“Market competitiveness also led to the fourth consecutive quarter in which lenders’ net profit margin outlook deteriorated,” added Duncan. “The share of lenders citing competition from other lenders as the key reason for a negative profit market outlook rose to a new survey high.”
