Mortgage Lender Sentiment Survey® (MLSS) Executive Summary — Q2 2017
More Lenders Looking to Ease Credit Standards as
Mortgage Demand Cools and Competition Heats Up
According to our Economic and Strategic Research Group, lenders report survey-high expectations to ease credit standards
as growth in purchase and refinance mortgage demand slows down.
Expectations to ease credit standards
climb to new heights.
Purchase mortgage demand drops to the
lowest reading in the past two years, year
over year.
80
net % of lenders
expecting more demand
net % of lenders
expecting to ease
15
9
3
0
Q2 2015
Q2 2016
Q2 2017
GSE Eligible
70
60
50
40
30
20
Q2 2015
GSE Eligible
Q2 2016
Non-GSE Eligible
Q2 2017
Government
Lenders continue to expect a lower profit
margin over the next three months, but the
trend has improved.
Overwhelming majority of lenders say
market competition is the main reason
for their lower profit margin outlook.
% of lenders
% of lenders
23%
16%
15%
39%
46%
Increase
48%
About the same
46%
38%
Q4
2016
Q1
2017
29%
Decrease
Q2
2017
71%
26%
21%
Market
Competition
Market Trend
Changes
Staffing Costs
Other factors cited include government regulatory compliance
and consumer demand.
To learn more, read the full findings
Mortgage Lender Sentiment Survey®
Led by senior vice president and chief economist, Doug Duncan, our Economic & Strategic Research (ESR) Group studies current data, analyzes historical and emerging trends,
and conducts surveys of consumer and mortgage lender groups to provide forecasts and analyses on the economy, housing, and mortgage markets.
© 2016 Fannie Mae. Trademarks of Fannie Mae.