Big Banks Ease "Somewhat" on Prime Mortgages

A small fraction of banks eased their credit standards on prime mortgages over the past three months, according to a July survey of senior loan officers by the Federal Reserve Board.

Of the 57 banks surveyed, LOs from five large banks said they "eased somewhat" and two smaller banks said they tightened somewhat.

The survey also found a slight pickup in demand for residential mortgages since April, particularly for non-traditional mortgages.

The senior loan respondents noted no change in underwriting standards for commercial real estate mortgages and little change in demand.

"Overall, the net fraction of banks that reported that demand for CRE loans had deceased continued to be small," the Fed said.