Over 50% of mortgage lenders said they plan to increase their marketing towards first-time homebuyers in 2015 to take advantage of changes in conforming and government lending programs, according to the latest mortgage lender sentiment survey from Fannie Mae.
In particular, midsized and smaller lenders indicated that they are more likely to focus their marketing efforts on lower-than-median-income consumers. These are the consumers most likely to be helped by Fannie Mae's new 97% loan-to-value ratio program as well as the Federal Housing Administration's recently announced reduction in the monthly mortgage insurance premium.
Larger banks said they plan to focus their marketing efforts on more affluent consumers.
Overall, an overwhelming number of residential mortgage lenders plan to grow their origination and servicing business during 2015.
The government-sponsored enterprise found that 88% of respondents plan to grow their businesses through branch and loan officer increases and more marketing. Only 12% said they were looking to maintain their business, and none reported that they planned to downsize or leave originations.
Of the 192 lenders that participated (out of a survey universe of 2,000), 70% said they plan to grow their mortgage servicing business.
Lenders especially said they plan to target first-time homebuyers, with 52% responding that they plan to increase marketing towards that borrowing segment, while 42% said they plan on targeting borrowers who want to upgrade their housing.
