WASHINGTON—What are the top priorities and strategies for mortgage lenders for the rest of the year as the market has changed? The recent Fannie Mae Mortgage Lender Sentiment Survey (MLSS) special topic analysis offers some answers.
In a new Perspectives blog, Doug Duncan, Fannie Mae’s senior VP and chief economist, said mortgage lenders appear to be adapting their priorities as the result of a new set of challenges, including weakened mortgage demand and rising rates.
Among the findings, according to Fannie Mae:
- Mortgage lenders’ business priorities have shifted significantly compared to prior years, with cost-cutting now the most frequently cited business priority. Talent management surpassed business process streamlining to become the second-most important priority, while consumer-facing technology investment dropped out of the top three.
- In preparing for the shift toward a more purchase mortgage-focused market, lenders most commonly cited improving the origination process and customer experience as their top strategies, similar to last year.
- For the third consecutive year, a majority of respondents cited “online direct-to-consumer lenders” as their biggest expected competitor over the next five years, with many pointing to what they believe to be those companies’ advantages, including lower costs, streamlined mortgage processes, and advanced analytical and marketing capabilities.
For info, read the research report.