St Casimirs Mortgage Minute

Mortgage Lenders Cautious of High-Risk Borrowers

The Lenders One Mortgage Barometer reveals that of the 200 mortgage lenders polled, 64 percent originate non-qualifying mortgages, but only 18 percent do so often. Of the lenders that do not originate non-qualifying mortgages, 51 percent said they are extremely or very likely to originate these loans this year. Meanwhile, Lenders One found that 77 percent of mortgage lenders believe better customer service is the key to being competitive this year, while 71 percent believe improving the time from origination to closing will make them competitive. "Mortgage lenders are looking at 2016 as a year in which they will move toward a more growth-focused business strategy," said Lenders One Interim CEO Daniel T. Goldman. "However, some external factors such as rising interest rates and a complex regulatory environment will continue to temper the pace at which mortgage lenders seek to expand." In terms of regulatory compliance, mortgage lenders said they are mainly focused on TILA-RESPA Integrated Disclosure (41 percent), the Home Mortgage Disclosure Act (24 percent), and Consumer Financial Protection Bureau audits (14 percent).

From "Mortgage Lenders Cautious of High-Risk Borrowers"
DSNews (03/21/2016) West, Xhevrije