Mortgage Lending Standards and Demand As Reported by Domestic Banks
Chart of the Week for August 19-25, 2005
The above chart reflects data from the Federal Reserve’s July Senior Loan Officer survey. Banks have reported stronger demand for mortgages, with over 20% reporting an increase over the April survey. Although the credit standards for mortgage loans are relatively unchanged over the period, banks could begin a tightening trend. The reported proportion of riskier non-traditional mortgage products has increased significantly over the twelve-month period. Banks also seem to be acting in accord with the suggestions of the Fed, the FDIC, and other agencies in examining their standards for home equity loans and other lines of credit.
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