Mortgage lenders continue to expect disappointing
profit margins. For the sixth consecutive quarter the net responses to a
question about those margins in Fannie Mae's Mortgage Lender Sentiment Survey were
in the negative. In the first quarter survey for 2018, the question about
profits increasing resulted in net positive responses of -31%. Of the 52
percent of respondents who did not anticipate a decrease, 35 percent expected margins
would remain unchanged over the next three months. Those who expect a lower profit margin again pointed
to "competition from other
lenders" as the primary reason, setting another new survey high for the
fifth consecutive quarter.
While home prices continue to rise and homeowner
equity to increase, CoreLogic reports that there are still 2.5 million
mortgages in negative equity. The company's fourth quarter 2017 equity report
states that homeowners increased their house-related wealth by an average of
$15,000 from Q4 2016 through the end of 2017.
The aggregate of these gains nationally was $908 billion, a year-over-year
growth of 12.2 percent. Frank Martell, CoreLogic president and CEO said, "There are wide disparities
in home-equity gains by geographic areas, with higher-priced, capacity
constrained markets along the East and West Coasts registering the largest
Feedback Friday – BRAWL
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