February 2015 Mortgage Originators Survey

This survey highlights the impact of the QM rule, a year after its inception. The new year brought a number of regulatory changes that impact the GSEs, FHA, VA, and the market in general.

Highlights:

  • Half of respondents indicated that the QM rule had had a “small negative impact” on the market, while 35% indicated that impact was significantly negative. 10% indicated no impact, while 5% reported a small improvement.
  • The non-QM share of originations tumbled to 1.8% of production in the 4th quarter from 5.0% in the 3rd. However, the rebuttable presumption share rose from 3.5% to 6.3%.
  • 45% of respondents indicated having had an issue closing a loan due to some facet of the QM rule, down from 64% in the prior quarter. After increasing in the 3rd quarter, the share of lenders using buffers to prevent infractions of the QM rule eased.
  • Respondents’ confidence in their preparations for the QM/ATR rules leapt to 70% from 59.9% in the 3rd quarter.
  • Over the next 6 months, respondents expect improvements in credit access for prime products, including lower credit prime borrowers, but a more modest improvement for non-QM and little change for rebuttable presumption.

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