Smaller Banks Tighten Underwriting Standards on Loans
Smaller Banks Tighten Underwriting Standards on Loans
Smaller Banks Tighten Underwriting Standards on Loans
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November 9 2010 (Shirley Allen)
small banks picture
According to the October 2010 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve, smaller banks and mortgage lenders reported tighter lending standards on mortgage loans over the previous three months which marks a reversal from a slight easing that had been reported in the previous report.

Additionally, more banks reported that underwriting standards for home equity lines of credit had tightened, likely because house values continue to be under pressure.

Although both large and small banks reported the net tightening in underwriting on non-traditional loans such as sub-prime and Alt-A loans, the tightening of underwriting on prime mortgage loans was largely tied to smaller banking institutions.

Less than half of the banks and lenders that responded to the survey reported that they were making sub-prime and Alt-A loans during the quarter, which has been the trend since the start of the mortgage crisis.

Many of the banks and lenders reported weaker demand for both prime and nontraditional mortgages used to purchase homes.
Weakening loan demand for home purchases would not be good news for the flagging housing market, or for loan officers and mortgage brokers, who have relied on refinance applications to stay afloat. Unfortunately, even with historic low rates, demand for refinancing loans has been slowing too.

Just under $1 trillion in residential loan origination volume is predicted next year.

Tags: federal reserve, mortgage loans, underwriting standards, home equity lines of credit, home values, banks, lenders, loan officers, mortgage brokers, refinancing, loans

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REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
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NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

November 9 2010 (Shirley Allen)
small banks picture
According to the October 2010 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve, smaller banks and mortgage lenders reported tighter lending standards on mortgage loans over the previous three months which marks a reversal from a slight easing that had been reported in the previous report.

Additionally, more banks reported that underwriting standards for home equity lines of credit had tightened, likely because house values continue to be under pressure.

Although both large and small banks reported the net tightening in underwriting on non-traditional loans such as sub-prime and Alt-A loans, the tightening of underwriting on prime mortgage loans was largely tied to smaller banking institutions.

Less than half of the banks and lenders that responded to the survey reported that they were making sub-prime and Alt-A loans during the quarter, which has been the trend since the start of the mortgage crisis.

Many of the banks and lenders reported weaker demand for both prime and nontraditional mortgages used to purchase homes.
Weakening loan demand for home purchases would not be good news for the flagging housing market, or for loan officers and mortgage brokers, who have relied on refinance applications to stay afloat. Unfortunately, even with historic low rates, demand for refinancing loans has been slowing too.

Just under $1 trillion in residential loan origination volume is predicted next year.

Tags: federal reserve, mortgage loans, underwriting standards, home equity lines of credit, home values, banks, lenders, loan officers, mortgage brokers, refinancing, loans

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

November 9 2010 (Shirley Allen)
small banks picture
According to the October 2010 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve, smaller banks and mortgage lenders reported tighter lending standards on mortgage loans over the previous three months which marks a reversal from a slight easing that had been reported in the previous report.

Additionally, more banks reported that underwriting standards for home equity lines of credit had tightened, likely because house values continue to be under pressure.

Although both large and small banks reported the net tightening in underwriting on non-traditional loans such as sub-prime and Alt-A loans, the tightening of underwriting on prime mortgage loans was largely tied to smaller banking institutions.

Less than half of the banks and lenders that responded to the survey reported that they were making sub-prime and Alt-A loans during the quarter, which has been the trend since the start of the mortgage crisis.

Many of the banks and lenders reported weaker demand for both prime and nontraditional mortgages used to purchase homes.
Weakening loan demand for home purchases would not be good news for the flagging housing market, or for loan officers and mortgage brokers, who have relied on refinance applications to stay afloat. Unfortunately, even with historic low rates, demand for refinancing loans has been slowing too.

Just under $1 trillion in residential loan origination volume is predicted next year.

Tags: federal reserve, mortgage loans, underwriting standards, home equity lines of credit, home values, banks, lenders, loan officers, mortgage brokers, refinancing, loans

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.