According to the Lenders One Mortgage Barometer, a new survey conducted online among a random sample of 200 mortgage lending professionals, 77% of mortgage lenders claim that better customer service will give them a competitive edge in 2016, while 71% cited reduced time from origination to closing.
“Mortgage lenders are looking at 2016 as a year in which they will move toward a more growth-focused business strategy,” says Daniel T. Goldman, interim CEO at Lenders One. “However, some external factors, such as rising interest rates and a complex regulatory environment, will continue to temper the pace at which mortgage lenders seek to expand.”
The survey also highlighted how the non-qualified mortgage loan market is currently facing a mixed appetite from lenders. According to the survey results, 64% of respondents say they originate non-qualifying mortgage loans, with 18% reporting that they frequently do so. Among lenders who do originate non-qualifying loans, only about 51% say they are extremely or very likely to originate these types of loans in 2016.
Further, the study finds that the two areas lenders rate as having the biggest impact on the mortgage lending business in 2016 are compliance with regulations and rising interest rates, which are noted as being extremely or very impactful by 73% and 68% of lenders, respectively. The compliance-related areas on which mortgage lenders are most focused include the TILA-RESPA Integrated Disclosure, at 41%, the Home Mortgage Disclosure Act, at 24%, and Consumer Financial Protection Bureau audits, at 14%.