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Lenders Upbeat About Profits, Loan Demand
Monday, September 14, 2020
Mortgage lenders had an excellent second quarter in
terms of profitability according to the Mortgage Bankers Association, and
Fannie Mae's Lender Sentiment Survey for the third quarter indicates they
expect that situation to continue. Forty-eight percent of respondents believe
their profit margins will increase compared to Q2 while 37 percent say profits
will be about the same. Only 15 percent believe there will be a decline. Lenders said
consumer demand had remained strong across all loan types, GSE-eligible,
non-GSE-eligible, and government, and in some cases hit new highs. More lenders
reported that demand for purchase loans grew both for the prior three months and
the next three months and refinance mortgage demand remained extremely strong
in the third quarter on both a look-back and look-forward basis.
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