WASHINGTON–Mortgage lenders have reported a net positive profit margin outlook for a third consecutive quarter, according to Fannie Mae’s Q3 2016 Mortgage Lender Sentiment Survey.
Based on a survey conducted in August, the results show that 28% of lenders said they expect their firm's profit margin to increase over the next three months, compared with 17% who expect it to decrease and 55% who expect it to remain roughly the same, according to Fannie Mae.
In response to a question about what will drive the increase, the two leading responses from mortgage lenders remain operational efficiency and technology, and consumer demand, which are the same two reasons cited in previous surveys.
But among those lenders that expect a decrease in their profit margins, however, there was a decline in those who cited government regulatory compliance as a driving factor—39% compared with 61% during the same period last year. That is the first time in the survey’s history that government regulatory compliance was not the top reason for eroding profit outlook.