Tag Archives: Mortgage Credit Availability

​The American Bankers Association’s (ABA’s) 22nd Annual Real Estate Lending Survey determined that 90 percent of the typical bank’s mortgage loans made last year were qualified mortgages (QMs). The survey also found that 78 percent of respondents expect the Consumer Financial Protection Bureau’s (CFPB’s) mortgage lending rules will continue to limit credit availability, while 19 percent labeled the impact as severe.

As the MReport reported last week, credit is still tight for most borrowers, according to an April Urban Institute report. The report studied loan trends between 2009 and 2013, and found that mortgage credit is tighter than it was at the peak of the housing bubble in 2005 and 2006, as well as pre-housing crisis in 2011.

As for credit availability, Fratantoni said that “a number of factors contributed to a loosening of credit in March.” One factor is Freddie Mac's introduction of its 97 percent LTV program, which allows for as little as 3 percent down payment on a new home purchase. Other factors included looser parameters on jumbo loan programs, increased cash-out refinance loans offerings, and the growth of FHA’s VA Interest Rate Reduction Refinance Loan.