Survey of Mortgage Originators, Second Quarter 2016

NAR surveyed a panel of mortgage originators about their experiences in the 2nd 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 remained in a slump in the 2nd quarter despite a modest improvement in investor demand for these loans.
  • Credit access in general was expected to rise over the coming six months driven by gains in non‐QM and rebuttable presumption.
  • The share of transactions delayed due to TRID eased further to 1.7% with a slight uptick in TRID‐related cancellations.
  • Half of lenders passed increased costs to consumer with a weighted average increase of $258. Lenders were more reluctant to originate smaller loans in the TRID environment.
  • The share of lenders unwilling to share closing documents (CD) with REALTORS® rose to 64.3% in the 2nd quarter.
  • Lenders grew more optimistic about normalized operations in the next six months, but less so for investors' ability to adjust, which could prolong the impact in jumbo markets on the coasts.
  • More than half of respondents indicated they would participate in front‐end risk sharing or were considering it, but 42.9% were concerned about having no clear path for small lender participation.
  • 14.3% of respondents cited more rate extensions due to BREXIT, while 28.6% noted a shortage of appraised but a majority 64.3% noted not changes.

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