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Lenders Expect Refi Wind-Down to Lower Profits

Posted To: MND NewsWire

Lenders aren’t taking the refinance boom for granted. Fannie Mae’s second quarter Mortgage Lender Sentiment Survey found most respondents do not expect business, and therefore profits, to remain at current levels. Sixty-nine percent said profit margins would decline over the upcoming three months , 19 percent expect they will remain the same, and 11 percent believe they will increase. It was the third quarter in which pessimism predominated, but only 52 percent of respondents to the first quarter survey expected a decline. Lenders reported they had seen increased demand for purchase mortgages over the prior three months as demand for refinancing wound down. The net share of lenders who reported that demand had grown turned negative for the first time since the first quarter of 2019 and was…(read more)

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