Competition, Declining Demand, Driving Credit Easing

Posted To: MND NewsWire

With mortgage volumes expected to decline, more lenders are telling Fannie Mae that they intend to loosen their credit standards. The company's second quarter 2017 Mortgage Lender Sentiment Survey found that, on net, the share of lenders reporting they have eased mortgage credit standards over the previous three months has continued the gradual uptick which started in the fourth quarter of last year. Additionally, when anticipating the next three months, the net share of lenders saying they plan to ease credit standards for GSE eligible, non-GSE eligible, and government loans reached or surpassed survey highs. "Expectations to ease credit standards climbed to survey highpoints in the second quarter as more lenders reported slowing mortgage demand and increasing concerns about competition from...(read more)

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