[1]Mortgage Industry professionals are optimistic about their current business conditions and six-month outlook, according to data [2] from the Collingwood Group [3] and The Five Star Institute [4]. Of the respondents surveys 46 percent believed business conditions are “a little better” than this time last year, up 14 percent from just five months ago.
Respondents cited low interest rates, a strong refinance business and higher consumer confidence as reasons for the increase in optimism. Those surveyed also mentioned incorporating new regulatory changes over the last year has helped them overcome obstacles of the past. Those who said their current business conditions have gotten worse cited regulatory challenges, minimal wage growth, and the end of the refinance boom.
But it’s not just mortgage professionals who are optimistic, 54 percent of consumers believe getting a mortgage is easier today, according to Fannie Mae’s February 2015 National Housing Survey [5]. The report suggests rise in consumer optimism is largely attributed to recent employment gains. The nation’s unemployment rate dropped to 5.5 percent this month, according to the U.S. Bureau of Labor Statistics, which is the lowest it has been in years.
Approximately, 84 percent of survey respondents said business conditions will be between “a little better” and “much better” with 52 percent selecting, “a little better.” Respondents indicated that given the current economic conditions and seasonal lull, they expect to see a small increase in origination volume in the next six months. Improved consumer confidence should outweigh the impact of higher interest rates. Furthermore, if lenders begin to loosen credit standards and make more non QM loan options available, there could be a higher increase in volume.
The Collingwood Group conducted the survey in partnership with The Five Star Institute [6]. A diverse group of mortgage industry leaders were polled, with the largest percentage of those surveyed coming from lending or originating (37 percent), followed by service providers and industry vendors (19 percent) and consultants/advisers/attorneys (16 percent).
(Editor's note: The Five Star Institute is the parent company for MReport and TheMReport.com)