By at September 03, 2009 10:21
Filed Under: Economy
If you’ve been looking for a consumer loan of any kind, you know already that bank lending has changed dramatically in the past year. And, though things might not be looking that great right now, the Federal Reserve System has just released their July 2009 Senior Loan Officer Opinion Survey on Bank Lending Practices for the period of April through June.
About bank lending for prime residential mortgages:
- Only 17.6% said their standards were tighter.
- 78.4% said their standards remained basically unchanged.
About bank lending for nontraditional residential mortgages:
- 45.8% said their standards were tighter.
- 54.2% said their standards remained basically unchanged.
(There were no figures available for sub-prime residential mortgages because so few loan officers responded to the question.)
About bank lending standards for new revolving home equity lines of credit:
- 35.9% said their standards were tighter.
- 60.4% said their standards remained basically unchanged.
About bank lending standards for existing revolving home equity lines of credit:
- 35.3% said their banks reduced limits on existing revolving home equity lines of credit.
About bank lending standards for new consumer credit cards:
- 36.3% said their standards were tighter.
- 64.7% said their standards remained basically unchanged.
About bank lending terms and conditions for existing consumer credit cards:
- 50% said their banks reduced credit limits.
The surveyed loan officers were also asked to predict if or when their lending practices would loosen up.
- Only 2.1% said bank lending for prime residential real estate loans, (including home equity lines of credit) would loosen up by the end of 2009.
- 6.3% said in the first half of 2010.
- 27.1% said in the second half of 2010.
- 12.5% said in 2011.
- 41.7% said their bank’s standards for residential real estate loans wouldn’t loosen up anytime in the foreseeable future.
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