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Thursday, August 21, 2014

Lawler: Fannie Survey on How Lenders “Adapt” to ATR/QM

by Calculated Risk on 8/21/2014 07:59:00 PM

From housing economist Tom Lawler:

The Fannie Mae Economic & Strategic Research Group released the results of a recent survey of senior mortgage executives designed to see how mortgage lenders had and/or would “adapt” to the new Ability-To-Repay (ATR) and Qualified Mortgage (QM) standards that become effective January 10, 2014. A total of 201 executives representing 186 institutions completed the survey between May 28 – June 8,2014.

Here are the results for a subset of the questions.

Impact of ATR/QM Rules (% of Respondents)
  EaseBasically UnchangedTighten
Credit Standards6%58%36%
  IncreaseRemain About the SameDecrease
Operational Costs74%19%7%
Strategy on Non-QM Mortgage Loans
  Actively PursueWait and SeeDo NOT Plan to Pursue
Non-QM Loans19%46%34%

A presentation on the survey results is available at Impact of Qualified Mortgage Rules and Quality Control Review