More Lenders Say They're Easing Up on Credit
Katie Penote | September 21, 2015
More lenders say they're loosening up some of their lending standards across all loan types, according to Fannie Mae's third quarter 2015 Mortgage Lender Sentiment Survey. The survey shows the gap between lenders who are reporting an easing in credit as opposed to those who are reporting a tightening climbed 20 percentage points and 18 percentage points over the prior three months for GSE eligible and non-eligible loans – new survey highs. Additionally, more lenders say they plan to ease credit standards over the next three months. Opening the Credit Box Smaller Down Payments Lure More Buyers 3% Down Payments May Be Game Changer FHA Lowers Its Mortgage Costs "For the first time in seven quarters, we see a pronounced increase in the share of lenders, particularly medium- and larger-sized lenders, reporting on net an easing of credit standards in both GSE eligible and non-GSE eligible loan categories," says Doug Duncan, Fannie Mae's chief economist. "This is a significant result in light of public discourse on credit availability and standards. … We expect lenders' tendency toward easing credit standards, together with relatively low mortgage rates and a strengthening labor market, will continue to support the housing market expansion."
Source: RIS Media