During a survey conducted at the Lenders One Summer Conference in August, 89 percent of mortgage bankers said they think interest rates will jump before the end of the year while 60 percent forecasted that 2016 will still be a sellers’ housing market.
“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,” said Daniel Goldman, Interim Chief Executive Officer, Lenders One.
Strong housing market fundamentals of limited inventory and a falling unemployment rate are likely the cause of mortgage bankers’ faith in a 2016 that continues to favor home sellers.
Another pressing issue for mortgage bankers is the upcoming TILA-RESPA implementation. The new rules will create one disclosure document called the Loan Estimate and Closing Disclosure that will combine two existing mortgage disclosures. The aim is to make understanding mortgage terms much easier for consumers, but it will take some adjustment on the part of mortgage officers.
Part of Lenders One survey focused on TILA-RESPA readiness and 64 percent of mortgage bankers said they felt prepared with knowledge and tools to make the needed adjustments.
“Respondents also expressed positive views about TILA-RESPA preparedness, another big mortgage industry concern, in part because the extension of the implementation deadline has afforded mortgage bankers more time to get technology and processes ready to be compliant,” said Goldman.
The new rules go into effect in October 2015.