ABA Survey: QM Lending Dipped in 2015

The percentage of Qualified Mortgages originated by banks declined in 2015, falling to 86 percent from 90 percent in 2014, according to ABA’s latest Residential Real Estate Survey released today as the association kicks off its annual Real Estate Lending Conference in San Antonio. In most cases, bankers reported that borrowers’ debt-to-income ratios prevented loans from meeting QM standards.

The survey also found that bankers continue to worry about the effects of regulation on their ability to do business and meet the needs of their customers. Just over half the bankers surveyed reported that regulations are having a moderately negative impact on their business, while a quarter said that the impact was severely negative.

On a positive note, the foreclosure rate dropped from 0.57 percent in 2014 to 0.37 percent in 2015, while the single-family home delinquency rate fell from 1.76 percent to 1.27 percent. The percentage of single-family mortgage loans made to first time homebuyers reached an all-time high in 2015 at 15 percent, up from 14 percent in 2014. The 30-year fixed-rate mortgage remained the most popular loan type on the market, at 47.4 percent.

Looking ahead to 2016, bankers said they were most concerned about the increased regulatory burden, compliance concerns — including the TILA-RESPA integrated disclosure rule — economic uncertainties and the current interest rate environment. A total of 159 banks responded to the survey, 68 percent from institutions with less than $1 billion in assets.