Major lending growth is expected as we head into the spring home-buying season, according to Fannie Mae’s Lender Sentiment Survey.
No lenders are reporting plans to downsize or exit their origination business, and only 4 percent reported plans to downsize their servicing business, the survey found.
Of lenders surveyed:
- 88 percent are looking to grow their mortgage origination business
- 52 percent plan to increase marketing to first-time buyers
- 70 percent reported plans to grow their mortgage servicing business
A review of the past few Mortgage Bankers Association (MBA) weekly mortgage application reports shows the share of refinance applications surged to the highest level since July 2013, demonstrating demand.
In 2013, volume and beefed-up mortgages through servicing and refinancing defined the market. Then, 2014 was about purchases and which lenders would be in for the long term. In 2015, people will focus on how to grow their business.