Lower demand at banks for home loans was offset by rising demand for commercial real estate loans.
In its April 2011 Senior Loan Officer Opinion Survey on Bank Lending Practices, the Federal Reserve said there were no significant changes from the prior survey in standards for prime closed-end residential real estate loans and home-equity lines of credit.
The report reflected responses from 55 domestic banks and 22 U.S. branches and agencies of foreign banks.
Just 10 percent of the surveyed banks tightened their non-traditional residential lending standards. The tightening occurred only at smaller banks.
The report indicated that “moderate net fractions of banks” said that demand weakened for prime mortgages, nontraditional closed-end loans and HELOCs. Demand for closed-end loans has declined for three consecutive quarters.
But while residential loan demand decreased, demand for commercial mortgages strengthened.
Overall lending standards at banks eased further in the latest quarter.
