Though mortgage delinquencies and foreclosures to date have been relatively moderate, there is some concern that lenders have liberalized their underwriting standards to the point that loan performance could become problematic, a homebuilder analyst said in a June 20 conference call.As a result, "some believe lenders will tighten standard in the coming year," said Robert Curran, an analyst at Fitch Ratings. He said there have been "major changes in underwriting standards" on the part of lenders, including greater percentages of mortgages with high loan-to-value ratios and higher percentages of income allocated to mortgage payments.
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