Borrower Communication, Regulatory Concerns on Minds of Execs

A survey of mortgage lending executives conducted by mortgage insurance company Genworth found that most executives believe that a disconnect exists between lenders and borrowers on who qualifies for a mortgage.

The survey, conducted at the Mortgage Bankers Association's Secondary Mortgage Market conference in New York, found that 66% of lending executives believe that borrowers mistakenly think they wouldn't qualify for a home loan. A total of 113 executives were polled.

This goes hand-in-hand with the results of a Ipsos/Wells Fargo Home Mortgage survey that found 57% of consumers agreed with the statement it is very difficult for most people to get approved for a mortgage.

"Many qualified borrowers are uncertain about their own eligibility so it's critical for our industry to be proactive about encouraging homebuyer education as a tool to help borrowers fully understand how the home-buying process will work for them," Genworth president and chief executive Rohit Gupta said in a release.

Respondents also expressed skepticism over the Federal Housing Administration's ability to meet required capital levels, believing that it will take between one and three years for the federal agency to do so after its premium reduction in January.

But, executives mainly showed concern over the secondary market's mortgage insurer capital requirements, with 53% of senior executives polled saying their business will be impacted. A smaller percentage, 38% of non-senior executives, showed the same concern.