Mortgage Lender Sentiment Survey

Mortgage Lender Sentiment Survey July 2014

July 24, 2014
Survey Provides Key Insights Into Mortgage Lender Attitudes Toward Housing Market; Complements Fannie Mae’s National Housing Survey

The Fannie Mae Mortgage Lender Sentiment Survey, which debuted in March 2014, is a quarterly survey among senior mortgage executives at Fannie Mae’s lending institution partners to track insights into current lending activities and market expectations.

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.

The 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 Doug Duncan, senior vice president and chief economist at Fannie Mae.

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 was 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.”
 

Chart: Line graph showing share of institutions by loan volume group who say their credit standards over the past 3 months have eased, remained the same or tightened

On this webpage you will find a news release with highlights from the first two quarters’ survey results, the Q2 2014 Data Summary highlighting key metrics, the Q2 2014 Detailed Research Report, a podcast, FAQs about the survey objectives and methodology, and the questionnaires used for the survey.

Downloads and Related Links
Q2 2014 News Release
Q2 2014 Mortgage Lender Sentiment Survey Data Summary (PDF)
Q2 2014 Mortgage Lender Sentiment Survey Detailed Research Report (PDF)
Podcast – Q2 Mortgage Lender Sentiment Survey (.mp3)