Although demand has increased at some banks for a variety of single-family products, there tend to be just as many banks with falling demand for those very same loans.
Credit standards on residential loans that are eligible under Fannie Mae and Freddie Mac guidelines have eased over the past three months at 11 percent of banks.
But at
large banks —
those with total domestic assets of $20 billion or more as of Dec. 31, 2016 — the share where easing has taken place climbed past 18 percent.
Those findings were revealed in the
April 2017 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve.
Demand for government-sponsored enterprise products rose from January 2017 at nearly 30 percent of large banks and just 14 percent of non-large banks. At the same time, more than a fifth of large banks said demand was weaker, while over 17 percent of other banks said the same.
On government mortgages, standards have eased at 13 percent of large banks.
Government demand, meanwhile, was up at 12 percent of all banks and down at 22 percent.
Non-jumbo loans that satisfy the requirements of a Qualified Mortgage
but are not GSE-eligible saw loosened requirements at 11 percent of non-large banks. Demand for these loans rose at 14 percent of banks and fell at 17 percent.
For QM and non-QM jumbo mortgages, around 15 percent of the non-large banks noted that credit standards have eased. The share climbed closer to a fifth on non-QM non-jumbo loans. Jumbo demand was up at as much as a fifth of all banks and down at a similar share.
Subprime loans — those to borrowers with weak credit or reduced repayment capacity — saw no change in standards at any of the four institutions that reported such lending.
Standards for home-equity lines of credit have remained basically unchanged at most banks.
Stronger HELOC demand was reported by 15 percent of banks, while 12 percent reported weaker demand.
Standards on commercial real estate loans have tightened at 41 percent of large banks and 21 percent of the rest.
Loans
secured by nonfarm nonresidential properties have seen standards tighten at nearly a fifth of large banks and just a 10th of other banks. Although nearly a quarter of large banks noted weaker demand recently, an increase in demand was reported by 14 percent of smaller banks.
Almost 40 percent of the 72 banks that make multifamily loans indicated that credit requirements have tightened. Multifamily demand was down at 28 percent of larger banks and up at 24 percent of not-so-large banks.
On construction financing, almost a third noted tightening in standards. More than a fifth said demand has weakened.
