Mortgage Bankers Expect Growth In 2016, Regardless Of Rate Hike

Posted by Patrick Barnard on September 08, 2015 No Comments
Categories : Residential Mortgage

About 60% of mortgage bankers predict that 2016 will be a sellers' market, and about 89% say the market could weather an interest rate hike this fall, according to a survey conducted in early August by Lenders One, a national alliance of independent mortgage bankers, correspondent lenders and suppliers of mortgage products and services.

‘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,’ says Daniel Goldman, interim CEO of Lenders One, in a release.

Goldman adds that the extension of the deadline for the Consumer Financial Protection Bureau's new TILA-RESPA Integrated Disclosure (TRID) rules from Aug. 1 to Oct. 3 ‘has afforded mortgage bankers more time to get technology and processes ready to be compliant.’

But do mortgage bankers feel that the two-month extension has helped? According to the survey, about 47% of respondents say the delay will make adjusting to the new rules less difficult, while another 47% say adjusting to the new rules will be the same, regardless of the delay.

And does the delay mean mortgage bankers will be more prepared? About 64% say they have the knowledge and tools necessary to adjust to the new requirements. Another 27% say that they are somewhat ready, and only 9% indicated they do not have the knowledge and tools required to adjust to the new rules, according to the survey.

‘Preparation for [TRID] 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 says. ‘Fortunately, the survey results show that, at this point, the industry feels relatively well prepared for the implementation of these new regulations.’

Other top issues that survey respondents said they would be focused on next year include innovation in mortgage products (26%), continued increases in home values (22%) and lowering acceptable down payment amounts (10%).

The full survey results are available by contacting Lenders One.

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