Banks reported strong demand for purchase mortgages but very little in the way of easing their tight credit standards, according to a July survey of senior loan officers.
The Federal Reserve Board survey asked loan officers if their bank had eased underwriting standards in the past three months. Loan officers at seven of the 67 banks participating in the survey said they had “eased somewhat.”
Loan officers said two of the banks had “tightened somewhat” and not one of the LOs indicated their bank had “eased considerably.”
Meanwhile, over half (38) of the 67 banks reported “moderately stronger” demand for purchase mortgages.
The April survey found 28 of the 64 respondents banks reported “moderately stronger” demand for prime purchase loans since January. About an equal number of small and large banks experienced this increase in homebuyer demand in the April and July surveys.
“Modest net fractions” of bank respondents to the July survey “reported they had eased standards on prime residential or nontraditional mortgage loans over the past three months,” the Fed said. The July survey was released Monday.
