Fed: Banks Beginning to Ease Lending Standards

first_img Banks Credit Availability Federal Reserve Lending Standards 2016-02-23 Brian Honea  Print This Post Fed: Banks Beginning to Ease Lending Standards About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: DS News Webcast: Wednesday 2/24/2016 Next: CFPB Dispels Myths Surrounding New Servicing Rules and QM Rule Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Fed: Banks Beginning to Ease Lending Standards The Best Markets For Residential Property Investors 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News, Secondary Market Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Subscribe Tagged with: Banks Credit Availability Federal Reserve Lending Standards Banks have taken a great deal of criticism for the tight lending standards they have adopted in the wake of the financial crisis. A recent survey taken by the Federal Reserve found that some banks may be easing up when it comes to their residential mortgage lending, however.According to the January 2016 Senior Loan Officer Opinion Survey on Bank Lending Practices released this week by the Fed, lending standards have moderately eased in some categories of real estate loans and that banks, on net, expect standards to continue easing in some categories for residential real estate lending in 2016.According to the survey, a “moderate” net fraction of banks reported that they had eased standards on GSE-eligible loans in the fourth quarter of 2015; a “modest” net fraction of banks reported that they had eased their lending standards on QM jumbo and non-QM jumbo residential mortgage loans.The survey reported, however, that lending standards were virtually unchanged for other categories of residential real estate lending (on net). Weaker demand across most categories of home-purchase loans was reported for Q4 by a moderate fraction of banks. A moderate fraction of banks reported that demand for revolving home equity lines of credit (HELOCs) had increased on net in Q4, while the standards for approving applications of revolving HELOCs was little changed during the quarter on net, the Fed reported.A significant fraction of banks surveyed said they expect lending standards for business loans to tighten in 2016; however, a modest net fraction of banks said that they expect to ease their lending standards on GSE-eligible and nonconforming jumbo residential loans, according to the survey. The Fed reported that a small net fraction of respondents expect a decline in the volume of originations on GSE-eligible loans, and they expect the volume of originations of nonconforming jumbo residential mortgage loans to change little this year.Click here to view the complete survey. Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago February 23, 2016 1,394 Views last_img


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