Real estate agents' satisfaction with lenders and the underwriting process is rising as distressed home sales decrease, according to the latest survey from the California Association of Realtors.
CAR's Lender Performance Index recorded an overall score for the lending process of 66 at the end of 2014, up from 56 a year earlier, according to an April 20 press release. An improved housing market helped push the growing approval.
The satisfaction rating for all transactions, including distressed sales, also improved to a 3.7 on a scale of 1 to 5, with 5 being "very satisfied." In 2013, the rating stood at 3.2. Real estate agents' opinions on the ease of closing a transaction has also improved — only 20% rated it as "extremely difficult" in 2014 versus nearly 50% in 2011. The shift from distressed to nondistressed sales has helped to improve lenders' performance in this area, the association said in the release.
Additionally, the group's Underwriting Standards Index also showed improvement, though CAR noted that room to progress remained. The USI measured at 23 in 2014, up year-over-year from 17, due to a lack of tightening in underwriting standards.
CAR's lender performance survey has been conducted since 2010.
