As the mortgage regulation alphabet continues, with lenders implementing HMDA, TRID, QM and more, the industry cited regulation as having a negative impact on business production and consumer credit availability, according to the American Bankers Association’s 24th annual Real Estate Lending Survey.
The survey included responses from 159 banks. The data was collected from Jan. 19, 2017 to Feb. 24, 2017, and of the survey participants, 63% of respondents were commercial banks and 37% were savings institutions. About 76% of the participating institutions had assets of less than $1 billion.
“Non-qualified mortgage loans have been subject to heightened regulatory requirements and risk, reducing the willingness of banks to extend these loans to even the most creditworthy borrowers,” said Robert Davis, ABA executive vice president.
Looking at the current status of the Qualified Mortgage market, the chart bellows shows that since 2013, the average percentage of non-QM loans has significantly declined, falling from 16% in 2013 to only 9% in 2016.
Source From: http://www.housingwire.com/articles/39756-heres-how-the-industry-adapted-to-qm-lending-heightened-regulations
