Big Shift in Lender Attitudes Toward Cutting Costs

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Posted To: MND NewsWire

There was plenty of foreshadowing, but Fannie Mae’s Chief Economist Doug Duncan said last week that cost-cutting has risen as a priority for mortgage lenders. Both the Mortgage Bankers Association’s (MBA’s) first quarter Quarterly Mortgage Bankers Performance Report and an earlier release from Fannie Mae regarding results from its second quarter Mortgage Lender Sentiment Survey reported mortgage lender’s declining profits and gloomy outlook for improved financial results. The MBA’s report was only the second in its 10-year history in which independent mortgage lenders and bank mortgage subsidiaries reported a loss, in this case $118 per loan. Fannie Mae’s lender survey found more than a third of the 170 institutions that responded expected net profits to decline while nearly another half expected…(read more)

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