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Industry Trends 2018: What Caused Lender Profit Margin Compression?

Industry Trends 2018: What Caused Lender Profit Margin Compression?

In this article we interviewed MCT’s Director of Analytics, Bill Berliner, to explore how industry trends have contributed to shrinking margins. We’ll discuss lender competition, decreasing volumes, increased interest rates, and weakening of relative pricing of mortgage-backed securities (MBS) as contributors.

In the Q1 2018, Fannie Mae Mortgage Lender Sentiment Survey, most business owners credit lender competition as the major driver for reduced profit margins. We asked MCT’s Director of Analytics, Bill Berliner, to explain why lenders are so concerned about competition in the context of today’s market climate.

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