Cover of the Q1 2016 Survey of Mortgage Originators

NAR surveyed a panel of mortgage originators about their experiences in the 1st quarter of 2016. Participants were queried on current trends in lending and the impact of recent policy and regulatory changes.

Key Findings

  • Non‐QM lending tumbled in the 1st quarter from already anemic levels as investor demand for non‐QM loans retreated, but lenders expected it to improve modestly over the next six months.
Bar graph: Share of production for safe harbor QM rebuttable presumption QM non-QM in Q1 2016
  • Credit access in general is expected to rise over the coming six months driven by gains in prime and near prime lending.
Bar graph: Outlook for access to credit for mortgages, Q2 2014 to Q1 2016
  • The share of transactions delayed due to TRID was slashed from 8.3% to just 1.8% with no cancellations due to TRID.
Bar graph: Share of transactions delayed or cancelled related to TRID vs non-TRID issues, Q4 2015 and Q1 2016
  • Respondents continue to advise for longer rate locks, but nearly three quarters indicated that they could complete settlement without the buffer, though the use of rate lock extensions rose.
Bar graph: Advice to clients on longer rate locks, Q4 2015 and Q1 2016
  • Less than 30% of lenders were willing to share the closing documents (CD) with REALTORS®. TILA regulations were the most frequently cited reason.
Pie chart: Sharing closing disclosure with REALTOR® with written
  • Nearly a third of respondents indicated a wait‐and‐see approach to the FHA's revised certification rules, while another third indicated that the change would not result in increased lending to lower credit borrowers.
Bar graph: Effect of proposed FHA changes to certification policy

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