|
|
Domestic banks have tightened their mortgage guidelines and seen a decline in loan demand.
Those were the findings of the April 2007 Senior Loan Officer Opinion Survey on Bank Lending Practices released by the Federal Reserve today. A total of 73 respondents participated, including 53 domestic banks and 20 foreign banks. Most of the respondents had not tightened prime underwriting guidelines, according to the report. Prime borrowers have “relatively strong, well-documented credit histories, relatively high credit scores and relatively low debt-to-income ratios at the time of origination.” Demand for prime products dipped during the month. But 45 percent of the domestic banks reported having tightened guidelines for nontraditional borrowers, including those with Alt-A documentation, interest-only payments or option-ARMs, the data indicated. Demand for these loans weakened. Meanwhile, nine of the 16 institutions that originate subprime mortgages reportedly tightened those guidelines. Subprime borrowers either have derogatory credit, an incomplete credit history or high debt ratios. Demand for subprime services softened somewhat during the month. More domestic institutions indicated terms on commercial mortgages have been tightened while demand has weakened, the report said. |
FREE CALCULATORS TO HELP YOU SUCCEED
Tools for Your Next Big Decision.
Amortization Calculator
Affordability Calculator
Mortgage Calculator
Refinance Calculator
FHA Mortgage Calculator
VA Mortgage Calculator
Real Estate Calculator
Tags
Pre-Approval Resources!
Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…
Resource Center
Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.
TOP SEARCHED TOPICS
Your mortgages approval starts here.
Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.
Stay Up To Date with Today’s Latest Rates
Mortgage
Today’s rates starting at
Home Refinance
Today’s rates starting at
Home Equity
Today’s rates starting at
HELOC
Today’s rates starting at