Fannie Mae Lender Survey IDs Priorities, Sentiment, Experiences With Technology

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Fannie Mae, Washington, D.C., published its Mortgage Lender Sentiment Survey, finding that streamlining business processes is currently the most popular priority for respondents.

Thirty-seven percent of respondents pointed to that business goal, compared with 29% who answered the same in Q2 2024. Next, at 29%, was cost-cutting. That compares with 31% in Q2 2024.

In terms of where lenders will be looking to cut costs, 59% pointed to back-office staff, compared with 49% in Q2 2024, and 35% say they aim to cut general and administration expenses, down significantly from 64% in Q2 2024.

The survey took a look at lenders’ views on eNotes, finding 75% are familiar with them, and 22% have already adopted them. Sixty-two percent say they plan to introduce eNotes within the next two years.

For those already using eNotes, improved operational efficiency and enhanced consumer/borrower experience were listed as the top two benefits.

However, adoption challenges are salient: 46% say that there’s a lack of support from key investors or partners, and 52% say that key business partners aren’t permitting eNotes.

As for the adoption of remote online notarization, lack of uniformity in RON legislation across states and unclear/low investor acceptance of RON were the top-listed challenges.

For adoption of in-person electronic notarization, the biggest challenges were described as the availability of IPEN capabilities by settlement partners and unclear/low investor acceptance of IPEN.

In terms of sentiment, lenders’ outlook toward the economy has improved significantly from last year, marking the fourth-straight year of increased optimism.

Lenders continue to believe it is tough for consumers to get a mortgage, with 72% reporting it’s currently “very difficult.” The share of lenders who expect home prices to stay the same grew at its highest level since Q2 2021.