Mortgage Professionals Reveal Market Sentiments for Next Year
Although conventional lending follows established protocols, the methodologies employed by brokers to manage it demonstrate considerable variation. Qualification obstacles and the execution capabilities of intermediaries fundamentally influence how conventional loans are structured and completed. AD Mortgage conducted a comprehensive survey of over 250 mortgage professionals during the period of September 1-30, 2026, focusing on their conventional lending operations, client demographics, qualification impediments, and operational procedures.
For purposes of this survey, conventional lending encompasses Fannie Mae- or Freddie Mac-compliant lending products, encompassing both standard conforming loans and high-balance loan offerings.
“The market may feel uncertain, but people are still looking for a place to call home,” said Max Slyusarchuk, CEO at AD Mortgage. “We want to give brokers practical options they can bring to those conversations.”
The Conventional segment has demonstrated bidirectional movement, with 30.5% of respondents indicating an expanded proportion of their business relative to 2023, precisely equivalent to the 30.5% reporting a contraction. The remaining 39.1% have experienced negligible variation.
Regarding forward-looking projections, 46.4% anticipate that Conventional’s proportion of their business will remain relatively stable throughout the subsequent 12–24 month period. Optimistic projections regarding growth (34.5%) exceed pessimistic projections regarding decline (19.1%), thereby perpetuating the overarching pattern of heterogeneous experiences and outlooks.
Respondents Weigh In
AD Mortgage surveyed respondents regarding their perspectives on the trajectory of Conventional lending. The findings reveal a divided consensus among participants.
The predominant perspective, held by 36.8% of respondents, characterizes Conventional lending as “still the foundation of the mortgage market.” However, a substantial proportion of respondents (28.6%) contend that Conventional lending is “losing ground to Non-QM.”
Additional Highlights:
- Losing ground to Non-QM: 28.6%
- More technology-driven than ever: 15.9%
- Defined as much by the property as the borrower: 10%
- Evolving beyond traditional prime lending: 6.8%
- A broader tool for affordability: 1.8%
Income / DTI qualification is the clear No. 1 obstacle, selected by 55.0% of respondents. Credit / pricing ranks second at 40.5%, followed by cash to close / reserves (27.3%) and monthly payment (26.8%).
Conforming purchases represent the predominant transaction category, accounting for 85% of all acquisitions—a proportion exceeding that of any alternative transaction type by more than a factor of two. Cash-out refinancing operations (38.6%) and investment property acquisitions (38.2%) occupy nearly equivalent positions in the secondary ranking.
Furrther, cost demonstrates a distinct advantage in respondent preferences. Enhanced pricing and reduced total cost of ownership are favored by 57.7% of respondents, substantially surpassing both diminished mortgage insurance and associated fees at 32.3% and the automated underwriting system approval and underwriting methodology at 29.1%.
Note: Responses were collected September 1-30, 2026, during a period of market volatility.
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