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Mortgage Lenders Will Seek Competitive Edge through Better Customer Service and Reduced Time From Origination to Closing

March 21, 2016

Lenders Signal Caution about the Non-Qualified Mortgage Loan Market

ST. LOUIS, March 21, 2016 – A large majority of mortgage lenders say better customer service (77 percent) and improving the time from origination to closing (71 percent) are very important to being competitive in 2016, according to the Lenders One® Mortgage Barometer, a new survey of 200 mortgage lenders conducted by Lenders One.

“Mortgage lenders are looking at 2016 as a year in which they will move toward a more growth-focused business strategy,” said Daniel T. Goldman, Interim Chief Executive Officer, Lenders One. “However, some external factors such as rising interest rates and a complex regulatory environment will continue to temper the pace at which mortgage lenders seek to expand.”

Mortgage Lenders Cautious of High-Risk Borrowers

The non-qualified mortgage loan market faces a mixed appetite from lenders. Less than two-thirds (64 percent) of survey respondents say they originate non-qualifying mortgage loans, with less than one in five (18 percent) reporting that they frequently do so. Among lenders who do originate non-qualifying loans, only about one-half (51 percent) say they are extremely or very likely to originate these types of loans in 2016.  

Regulatory Compliance and Interest Rates Weigh on Mortgage Lenders

The two areas mortgage lenders rate as having the biggest impact on the mortgage lending business in 2016 are compliance with regulations and rising interest rates, which are noted as being extremely or very impactful by 73 percent and 68 percent of lenders, respectively. The compliance-related areas on which mortgage lenders are most focused include:

TILA-RESPA Integrated Disclosure (TRID) (41 percent)

The Home Mortgage Disclosure Act (HMDA) (24 percent)

Consumer Financial Protection Bureau (CFPB) audits (14 percent)

Survey Methodology
The Lenders One Mortgage Barometer was conducted online among a random sample of 200 mortgage lenders. Fieldwork was conducted by independent research firm, Market Intel Group, between January 4, 2016 and January 14, 2016. The margin of error associated with the sample of n=200 is +/- 6.9 percent at a 95 percent confidence level.
About Lenders One® Mortgage Cooperative
Lenders One (www.LendersOne.com) was established in 2000 as a national alliance of independent mortgage bankers, correspondent lenders and suppliers of mortgage products and services. Members of the St. Louis-based platform originated $200 billion in mortgages in 2014; collectively ranking as one of the largest retail mortgage origination entities in the U.S., Lenders One is managed by a subsidiary of Altisource Portfolio Solutions, S.A.
About Altisource®
Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer-debt industries. Altisource’s proprietary business processes, vendor and electronic payment management software and behavioral science-based analytics improve outcomes for marketplace participants. Additional information is available at altisource.com