Mortgage

Lenders forecast rosy spring for mortgages

Fannie Mae survey shows improved economy, loosening credit standards fueling optimism

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Mortgage lenders expect increased demand and profit margins as we head into spring, according to Fannie Mae’s first-quarter 2015 Mortgage Lender Sentiment Survey. According to the survey, released today, an improved economy and relaxed credit standards are fueling optimism among lenders as the first quarter comes to an end. After gradually trending down throughout 2014, lenders’ purchase mortgage demand expectations for all types of loans (GSE eligible, non-GSE eligible and government loans) increased this quarter across institution sizes and types (mortgage banks, depository institutions and credit unions), although there might be seasonal influences, the survey found. For GSE-eligible purchase loans, 71 percent of lenders surveyed said they expect purchase mortgage demand to rise in the next three months, compared with 59 percent reported during the same quarter last year. Additionally, 41 percent of lenders reported increased profit margin expectations, up from 21 perce...