Mortgage Lenders to Ease Credit Standards Further Credit Easing seems to have become the norm this mortgage season. More mortgage lenders, compared to last quarters sentiment survey, say they have eased credit standards and may further ease in the coming months.
What types of loans are lenders planning to ease in the next 3 months?
Lenders are planning to ease credit standards for government-sponsored enterprise (GSE)-eligible, non-GSE-eligible and government loans. This is because lenders expect to grow GSE (Fannie Mae and Freddie Mac) and Ginnie Mae shares over the next 12 months and reduce portfolio retention and whole loan sales shares.
Why are lenders planning to ease credit standards?
Lenders are planning changes in lending standards because of concerns regarding economic conditions.
Demand Growth Comparison:
More lenders report that the demand growth for all loan types have fallen lower than what it was in Q2 2016 and Q2 2015. However, the net share of lenders expecting growth in demand for the ensuing quarter remains the same for the year over year quarter.
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