by Steve Deggendorf Director, Business Strategy, Economic & Strategic Research
Late last year, Fannie Mae and Freddie Mac announced an expansion of the availability of certain loans with a maximum loan-to-value (LTV) ratio of 97%. In addition, the Federal Housing Administration (FHA) beginning on January 26, 2015 reduced annual mortgage insurance premiums (MIPs) by 0.5% on new loans.
These initiatives endeavor to expand access to mortgage credit and make monthly mortgages more affordable to qualified and creditworthy borrowers. Fannie Mae's Economic & Strategic Research Group surveyed senior mortgage executives in February through its quarterly Mortgage Lender Sentiment Survey™ (MLSS) to examine lenders' views ...Read more »
by Sarah Shahdad and Qiang Cai Economic & Strategic Research
Prospective homebuyers must navigate the complex process of obtaining a mortgage. Research and consumer guidance suggest that obtaining multiple mortgage quotes and being better informed may help borrowers get a mortgage with a better set of financial terms. Improved borrower outcomes also may benefit lenders in the form of increased customer satisfaction and retention.
By analyzing Fannie Mae's National Housing Survey™ data, we find that when controlling for multiple variables, our sample of recent Fannie Mae homebuyers' key shopping experiences and behaviors are most highly associated with ...Read more »