Since July, residential lenders have tightened their underwriting standards on prime jumbo mortgages, as well as alternative-A and subprime loans, according to a Federal Reserve Board survey of senior loan officers.Banks increased their loan fees, spreads, and downpayment and income documentation requirements on prime jumbo mortgages, according to the October survey. Over one-third of respondents said originations of prime jumbos had declined, and 10% reported an increase. Meanwhile, 40% of the loan officers reported tightening credit standards on conforming prime loans, 50% reported tightening on "nontraditional" mortgages (alt-A, interest-only, and payment-option adjustable-rate mortgages), and 55% reported tightening on subprime loans over the past three months. At a fair-lending conference, Fed Governor Randall Kroszner said Fed surveys show significant tightening on subprime loans. He added that delinquencies and foreclosures on subprime loans are "likely to continue to rise for a number of quarters."

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