Tag Archives: Lending Standards

“Credit availability declined in December to the lowest level since 2012, as ongoing industry consolidation is resulting in more loan programs being removed from the marketplace,” said Joel Kan, MBA’s VP and Deputy Chief Economist.

Lending standards loosened, driven by an increase in conventional mortgage credit, as well as an expansion in agency programs for ARMs and high-balance loans, according to a new report.

The effects of the contemporary lending environment are rather significant. According to the institute, if the “cautious” credit standards of 2001 were in place in 2013, rather than that year’s “severe” standards, an additional 1.25 million loans would have been made in 2013.