Magazine article Mortgage Banking

Mortgage Bankers See Market Weathering Possible Rate Hikes

Magazine article Mortgage Banking

Mortgage Bankers See Market Weathering Possible Rate Hikes

Article excerpt

St. Louis-based Lenders One[R] surveyed its members at its Lenders One Summer Conference in August and found a majority expecting 2016 to be a seller's market and many optimistic that the housing market could weather a possible rate hike.

Of the group's mortgage banker members, 60 percent expect next year to be a seller's market for housing while 89 percent said they believe the market could weather a possible interest-rate increase.

In a Sept. 8 press release, Lenders One Interim Chief Executive Officer Daniel Goldman said, "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."

In terms of regulatory challenges, the surveyed members were also positive in their outlook. The Oct. 3 deadline for the Truth in Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure (TRID) rule was also a topic of discussion at the summer conference. Goldman said, "Respondents also expressed positive views about TILA-RESPA preparedness, another big mortgage industry concern, in part because the extension of the implementation deadline [from the original Aug. 1 deadline] has afforded mortgage bankers more time to get technology and processes ready to be compliant."

Surveyed lenders reported keeping their eye on a number of issues that could determine whether 2016 is a really good year or not. Some of the issues they said they will be watching are: innovation in banks' menu of mortgage products; whether there are continued home-price gains; and whether loan programs lower their down-payment requirements. …

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