Posted To: MND NewsWireMortgage lenders appear to be holding credit standards stable despite increasing competition and declining demand and profit expectations. Fannie Mae’s third quarter Mortgage Lender Sentiment Survey found an increasing number of respondents reporting a net negative profit margin outlook, the eighth consecutive quarter they have done so. The net negative was 20 percent compared to 17 percent in the second quarter and 12 percent in the third quarter of 2017, however it was lower than in either the fourth quarter of last year or the first quarter of this year when the net negatives were 22 percent and 31 percent respectively. The low expectations for profitability come amid further erosion of mortgage demand. Regardless of the loan type, GSE-eligible, non-GSE eligible, and government, the net…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631