December 2015 Mortgage Originators Survey

NAR surveyed a panel of mortgage originators about their experiences in the 4th quarter of 2015. Participants were queried on current trends in lending, their willingness to originate certain products, the outlook, and the impact of recent policy and regulatory changes.

Key Findings

  • Non‐QM lending made a modest comeback in the 4th quarter led by banks, while mortgage bankers spurred demand for rebuttable presumption loans.
Bar graph: Share of production for safe harbor QM rebuttable presumption QM non-QM, Q1 2014 to Q4 2015
  • Investor demand for non‐QM loans slumped, but is expected to improve modestly over the next six months.
Bar graph: Investor demand for non-QM loans, Q4 2015
  • Credit access in general is expected to rise over the coming six months as is investor demand for most categories.
Bar graph: Outlook for access to credit for mortgages, Q2 2014 to Q4 2015
  • Lenders report that 8.3% of settlements were delayed and 1.5% cancelled due to TRID. Mid‐sized originators reported the most issues.
Bar graph: Transactions delayed or cancelled for TRID vs non-TRID issues
  • More than 60% of respondents advised clients for longer rate locks, but nearly half of this group indicated that they could complete settlement without the buffer on at least some transactions.
Pie chart: Advising clients to take longer rate locks
  • Less than 30% of lenders were willing to share the closing documents (CD) with REALTORS®.
Stacked bar graph: Policy on providing REALTORS® with transaction closing document
  • The majority of lenders expect operations to normalize within 9 months
Bar graph: When will your firm normalize operations in the TRID environment?
  • 70% of respondents think the FHA's revised condo rules will help with access to credit.
Stacked bar graph: Effect of FHA condo policy on access to credit for condos

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