Mortgage Bankers expect sellers’ market in 2016 despite possible rate hike

Lenders One survey on outlook, TRID readiness and more

The majority of Lenders One mortgage banker members (60%) expect 2016 will be a sellers’ market and the vast majority (89%) of members believe the market could weather a possible interest rate increase this fall.

Members’ sentiment was collected in a survey conducted during the Lenders One Summer Conference held in August. Lenders One is managed by Mortgage Partnership of America, a subsidiary of Altisource Portfolio Solutions

“Mortgage bankers are generally optimistic about 2016 and believe that a possible interest rate hike is not going to create a major hurdle for continued industry growth next year,” said Daniel Goldman, Interim Chief Executive Officer, Lenders One. “Respondents also expressed positive views about TILA-RESPA preparedness, another big mortgage industry concern, in part because the extension of the implementation deadline has afforded mortgage bankers more time to get technology and processes ready to be compliant.”

Looking ahead to 2016, mortgage bankers are also watching a number of key issues that may impact the industry’s growth. These include innovation in banks’ menu of mortgage products (26%), continued increases in home values (22%) and lowering acceptable down payment amounts (10%).

Mortgage bankers think they are largely ready for TILA-RESPA, mixed on impact of delays.

“Preparation for the TILA-RESPA integrated disclosure rule requirements has dominated industry conversations for several months, and we’ve been working closely with our members to provide services and offerings that can help them address these changes,” Goldman said. “Fortunately, the survey results show that at this point the industry feels relatively well-prepared for the implementation of these new regulations.” 

Two months in advance of the expected TILA-RESPA implementation in October 2015, the majority (64%) of mortgage bankers feel they have the knowledge and tools necessary to adjust to the new requirements. Another 27% stated that they are somewhat ready, and only nine% indicated they do not have the knowledge and tools required to adjust to the new rules.

When asked whether the implementation delay will make adjusting to the new TILA-RESPA rules more or less difficult for lenders, nearly half of respondents (47%) said adjusting to the rules would be less difficult. Although, another 47% felt adjusting to the new rules will be the same, regardless of the delay.

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