WASHINGTON—Mortgage lenders appear to be adapting their strategies to remain competitive in the current challenging environment, a new study from Fannie Mae suggests.
Key Findings
According to Fannie Mae, key findings from the Mortgage Lender Sentiment Survey special topic analysis include:
- Mortgage lenders cited “cost-cutting” as their most important business priority for the second year in a row. Additionally, lender sentiment toward the U.S. economy remained extremely pessimistic, continuing a trend that began in the third quarter of 2021.
- Significant differences exist in business priorities across institution types. “For instance, mortgage bank priorities reflect higher cost and revenue pressures, whereas depository institution priorities reflect the challenges of meeting regulatory changes and recruiting talent to drive sales. Lenders also pointed out the importance of having the right leadership team to coach and motivate staff.”
What Lenders Said
“Housing stock/supply and mortgage rate changes were cited by lenders as the biggest risk factors, followed by bank liquidity risk. Lenders were less concerned with cybersecurity, consumer access to credit, mortgage delinquencies, and the cost of goods and services,” said Doug Duncan, Fannie Mae chief economist and SVP.
Access the full research report.