Fannie Mae's writers use the word "stable" repeatedly to describe many of the findings from its fourth quarter 2014 Mortgage Lender Sentiment Survey, especially where the senior executives completing the questionnaire detailed their operational expectations.

The November survey found fewer lenders reporting tightened credit standards. Thirteen percent of respondents said their standards had tightened for GSE eligible loans compared to 28 percent in the first quarter of 2014.  More lenders reported their institutions had loosened standards for non-GSE-eligible loans than reported tightening them, the second consecutive quarter this pattern has prevailed.

The number of senior executives reporting that demand for loans for single-family home purchases either declined significantly or stayed the same increased measurably from the Q3 survey, especially those reporting less demand for non-GSE-eligible loans. This view was more predominant among larger lenders.  Very few respondents projected that demand would increase in the short term and Fannie Mae said this has been a consistent trend with fewer lenders each quarter expecting an improvement in purchase loan demand.

As to the areas of stability.  Lenders responses have remained fairly consistent throughout the year saying that they expect to maintain current mortgage execution strategies and mortgage servicing rights execution over the following three months. 

Lenders' profit margin outlook has also remained relatively stable after a first-quarter drop. Among larger lenders, the importance of government regulatory compliance in driving their decreased profit margin outlook has gradually declined; weak consumer demand is increasingly cited as driving lenders' decreased profit margin outlook.

"Overall, lenders' growing concerns with purchase mortgage demand is broadly in line with major industry indicators and supports our views of a modest housing expansion going into 2015," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "While government regulatory compliance remains the top driver of declining profit margin expectations across all lenders, more lenders, and in particular larger lenders, are increasingly concerned with consumer demand risk."

"The increased share of lenders who reported easing of credit standards could be associated with Fannie Mae and Freddie Mac releasing updated guidelines to their representations and warranties frameworks, intended to provide lenders with greater certainty and clarity around potential repurchase risk. These efforts indicate industry endeavors to boost housing activities by making mortgages available to more borrowers," said Duncan. "We believe that some combination of easing of credit standards, relatively low mortgage rates, and ongoing labor market improvements will help the housing market to grow steadily, albeit modestly, in 2015."

The Fannie Mae survey presented respondents, primarily its lender partners at the CEO, CFO level with the same questions it asks consumers monthly in its National Housing Survey.  Responses to the "right track/wrong track" question about the economy from the two groups were almost mirror opposites while the groups generally agreed about what will happen over the next year with home prices.

Most striking was the divergence of opinion between the two over the ease of getting a mortgage.  The lenders' outlook was as pessimistic as their view of the overall economy was optimistic.