While this report seems to show mortgage credit standards are loosening, 88.9% of lenders said that mortgage credit for GSE-eligible residential mortgages remained the same over the past three months, according to the survey from the Fed. Qualified mortgage non-jumbo loans, non-GSE-eligible mortgages, saw credit standards remain the same at 95% of banks. QM jumbo loans eased somewhat for 7.9% of banks, and non-QM Jumbo loans reduced slightly for 5.2% of lenders.
Key Takeaways:
- The Federal Reserve sent out a survey to senior loan officers, asking about the status of mortgage credit, if it was loosening and how many consumers are applying for the products.
- Credit standards for mortgage loans the bank categorizes as government residential mortgages remained the same over the past three months for 96.5%.
- Another 11.1% reported that credit eased somewhat, the highest increase of all the mortgage types.
“Home prices hit a new all-time high, finally surpassing the pre-recession peak, according to the Q3 2016 U.S. Home Sales Report.”
http://www.housingwire.com/articles/38468-is-the-mortgage-credit-box-really-loosening
Alliance Credit Counseling
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Charlotte, NC 28226
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