Tag Archives: Credit Standards

Lender sentiment is at an all-time low according to the latest Mortgage Lender Sentiment Survey by Fannie Mae that was released on Thursday. The profit margin outlook, as ...

Lenders are continuing to loosen up their credit standards—and they have been for some time, according to a new survey from Fannie Mae. But what’s causing this easing and how long will it go on? The GSE may have the answer.

Mortgage lenders reported demand growth for GSE eligible purchase mortgages over the past three months rebounded significantly in the second quarter this year.

Fewer mortgage lenders are reporting that they are loosening credit standards, and many do not expect credit to become more accessible over the next few months, according to data from Fannie Mae.

Although lenders are being selective in who they lend to in terms of credit score, overall, mortgage lending standards have eased every quarter over the last two years. Could this be the beginning of yet another financial crisis?

Credit standards among mortgage lenders tend to change with overall economic conditions. A survey from the Federal Reserve shows that credit standards may be easing among lenders, but will this change be in the best interest of the housing market?

The Fannie Mae survey found that the easing of credit standards may help solve some of the affordable housing problems that the housing market has been experiencing.

Banks lowered mortgage lending standards in the third quarter of 2015, according to the Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices.

Mortgage lenders are feeling more positive on purchase mortgage demand, profit margin, and credit standards over the next three months, according to a recent Fannie Mae’s second quarter 2015 Mortgage Lender Sentiment Survey. The survey shows that lenders’ near-term outlook for purchase demand and profit margin are reaching higher levels than 2014’s survey results.

In a recent posting on Freddie’s blog, Boyle encourages mortgage seekers to keep in mind the “four Cs” ‒‒ the main four things lenders look at when deciding whether to write a loan. First there is the borrower’s capacity to repay the loan.