Lending Standards Stringent As Credit Squeeze Worsens
Major mortgage lenders have made it tougher for all types of customers to get loans over the past three months, according to the Federal Reserve’s quarterly survey of bank lending officers. This summer’s credit squeeze prompted an unprecedented tightening in lending standards at major banks. As credit standards toughened, demand for loans also fell, the Fed reported Nov. 5, providing some fresh details on the fallout from the credit crunch. Residential mortgages were harder to get than at any time in the 17-year history of the Fed’s survey of banks’ senior loan officers, the Fed said. The survey covers 52 domestic banks and 22 foreign banks, which together account for a majority of bank lending in the country.
search for : mortgage lenders, tightening in lending standards
