Key facts
- 46.4% of mortgage professionals expect conventional lending to maintain its share of business over the next 12-24 months.
- 55% of respondents cited income and debt-to-income ratio qualification as the top obstacle to closing.
- 82.7% of respondents cited pricing as the leading factor in lender selection.
Conventional mortgage lending faces a mixed outlook heading into 2027, with mortgage professionals citing pricing, income qualification, and underwriting execution as key factors shaping loan production, according to an AD Mortgage survey released Wednesday. The survey of over 250 mortgage professionals found that 46.4% expect conventional lending to maintain its current share of their business over the next 12 to 24 months, while 34.5% anticipate growth and 19.1% expect a decline. Max Slyusarchuk, CEO of AD Mortgage, stated that pricing and qualification both shape conventional lending today. While 36.8% of respondents believe conventional lending remains the foundation of the mortgage market, 28.6% think it is losing ground to non-QM lending. Standard conforming purchase loans dominated pipelines, followed by cash-out refinances and investment property purchases.