It's no secret in the industry that mortgage lenders have eased credit standards, but the real kick is that lenders expect this continue into the upcoming year. Fannie Mae's fourth quarter 2015 Mortgage Lender Sentiment Survey found that more lenders expect credit standards to ease rather than tighten for GSE-eligible loans and government loans over the next quarter.
According to the data, 16 percent of lenders expect GSE-eligible loan standards to ease in the fourth quarter, up from 11 percent last quarter. Meanwhile, only 2 percent of lenders believe that standards will tighten, down from 4 percent last quarter. For government loans, 12 percent of lenders expect credit standard to ease, while 3 percent expect them to tighten.
The Federal Reserve made a bold move yesterday, which most of the mortgage predicted would happen before 2015 comes to a close. So now that the rates are higher, mortgage industry professionals are now wondering how this change will be impact their business moving forward into the New Year. Several executives sat down with MReport to give their thoughts on if the housing market will thrive, stall, or completely shatter in the near future.