Fewer Banks Tighten Mortgage Underwriting Standards

July 1, 2012

in News

Fewer Banks Tighten Mortgage Underwriting Standards

Fewer banks tightened underwriting standards, while a slightly more than last year even eased them, according to a survey conducted by the Office of the Comptroller of the Currency. The agency surveyed 87 of the largest banks, covering 91% of all consumer loans in the U.S. banking system. Roughly 25% of the banks reported tightened underwriting standards for mortgages, down from 40% last year, according to the survey. Also, 10% of banks eased standards on home loans, an uptick from 8% in 2011. Banks already cinched standards to historic levels after the housing market collapse in 2007. But nearly two-thirds of banks surveyed by OCC left standards unchanged so far in 2012, signaling “there is a slow continued trend from tightening to unchanged standards.” [Read this article]

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