This quarter, 44% of mortgage lenders believe profit margins will remain about the same, 28% expect them to fall, and 27% believe they'll rise, according to Fannie Mae's Q4 2019 Mortgage Lender Sentiment Survey.
They expect strong consumer demand, especially among purchase mortgages, to keep overall expected profitability solid even as refinance demand softens in a more stable interest rate environment.
The steady outlook follows gains in the first three quarters of the year.
The pace of credit easing remained similar to last quarter, Fannie Mae says. Overall, most lenders reported no major changes in their underwriting credit standards for the prior three months and expected no major changes for the next three months.
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