According to a new report, the percentage of home buyers who applied for a mortgage through a broker increased in 2019 from a year earlier, while the percentage of those who applied through a bank or credit union fell below 50%.
The Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) on Thursday released updated data compiled by the National Survey on Mortgages (NSMO). The survey data provide insight into the experience of borrowers in obtaining a home mortgage.
Since 2014, the FHFA and CFPB have been sending out surveys to borrowers who have recently received mortgages. Thursday’s update provided data for two additional years through 2019.
FHFA associate director Lynn Fisher said the new data sets a foundation for “how borrowers viewed the mortgage process shortly before the COVID crisis.”
Key points include:
- The proportion of respondents who applied for a mortgage through a mortgage broker increased from 42% in 2018 to 46% in 2019 for home mortgages and from 30% in 2018 to 38 percent in 2019 for refinancing.
- On the other hand, the percentage of respondents who applied directly through a bank or credit union dropped from 54% in 2018 to 49% in 2019 for home mortgages and from 67% in 2018 to 61% in 2019 for refinancing.
- The percentage of respondents who said they were not worried about eligibility for a mortgage during the application process increased from 48% in 2018 to 51% in 2019. The number of respondents who said they were not worried about eligibility for mortgage refinancing increased from 57% in 2018 to 66% in 2019.
- Percentage of respondents who answered but The paperless online mortgage process, which is important when choosing a mortgage lender or broker, remained relatively high and did not change from 2018 to 2019 (40 percent for home-buying mortgages and 44 percent for refinancing).
“Getting information directly from borrowers is key to better understanding trends in the mortgage market,” said Mark McArdle, CFPB’s Assistant Director of Mortgage Markets. “The data gathered in this survey will give us a more complete picture of the borrower experience and improve the lending process for prospective borrowers.”
You can read more about the survey and find links to data here…