St Casimirs Mortgage Minute

Fannie Mae: Almost No Lenders Plan to Ease Credit Standards

Fannie Mae's Second Quarter 2016 Mortgage Lender Sentiment Survey shows that 90 percent of the lenders polled have no plans to ease credit standards for at least the next three months. Lenders reported a "net easing" of credit standards for all loan types over the last three months but indicated that the easing is "moderate." For loans eligible for sale to Fannie Mae and Freddie Mac, only 4 percent of lenders expect to further ease credit standards in the next three months. The report reveals that lenders experienced a "significant increase" in net demand growth for refinance mortgages across all loan types from the first quarter to the second quarter, which is attributed to continued historically low mortgage rates. However, lenders expect refinance demand to decline during the remainder of the year. "Key survey sentiment indicators suggest that lenders remain cautiously optimistic in their market outlook," said Fannie Mae Senior Vice President and chief economist Doug Duncan. "The outlook for purchase demand growth over the next three months returned to levels similar to last year, while the outlook for refinance demand and profit margin improved moderately versus last year's levels."

From "Fannie Mae: Almost No Lenders Plan to Ease Credit Standards"
HousingWire (06/14/16) Lane, Ben