Survey: 70% of lenders believe housing recovery is real
A new survey of bank risk professionals shows the originations space warming to the idea of expanding home lending.
Approximately 70% of the professionals surveyed feel home prices are rising at a sustainable pace, reaffirming that the housing recovery is real.
FICO and the Professional Risk Managers International Association surveyed bank risk professionals regarding their predictions for the next six months.
"The latest survey results, combined with data that indicates the real estate market is improving in many regions, paint a positive picture for a sector of the economy that has been slow to join the recovery," said Andrew Jennings, chief analytics officer at FICO and head of FICO Labs.
Meanwhile, 59% of bankers expect the supply of credit for residential mortgages to meet demand over the next six months, and 60% expect the supply of credit for mortgage refinancing to meet demand.
Jennings explained, "Mortgage lenders have been understandably guarded over the past five years. The improvement in their sentiment should be welcome news, and I wouldn't be surprised to see lenders cautiously expanding their mortgage and home equity lending businesses."
The survey found 84% of people believe that the level of mortgage delinquencies will decrease or stay the same, a significant improvement over last quarter.
Additionally, less than 20% believe the level of home equity line delinquencies will rise.