While bank lending standards on home loans have changed little recently, guidelines tightened on commercial real estate loans. Demand was up for both types of loans.
Residential
Loans
On purchase financing loans that are eligible for purchase by Fannie Mae and Freddie Mac,
17 percent of large banks said guidelines have eased from three months prior.
Demand for loans eligible for purchase by the government-sponsored enterprises was up at more than a third of all banks and down at 11 percent of just smaller banks.
Those details and more were laid out in the
April 2016 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve Board.
The survey reflects responses from 70 domestic banks and 22
U.S. branches and agencies of foreign banks and compares current conditions to three months earlier when the last survey was conducted.
Large banks are defined as
large and middle-market firms with annual sales of $50 million or more, while smaller banks are those with less than $50 million in annual sales.
Government mortgages; non-GSE loans; non-jumbo loans; non-QM jumbo mortgages; non-QM, non-jumbo loans; and QM jumbo mortgages used for home purchases saw little change in credit standards over the past-three months.
Demand for government loans increased at 28 percent of non-large banks and a fifth of large banks but declined at 10 percent of large banks.
On non-GSE, non-jumbo mortgages, demand strengthened at more than a fifth of all banks.
Demand rose at nearly a quarter of large banks for non-QM jumbo mortgages, while it was up at less than 13 percent of smaller banks.
More than 18 percent of large banks noted stronger demand
for non-QM, non-jumbo loans.
Demand increased for QM jumbo residential loans at more than a third of large banks and and less than a fifth of smaller banks.
Home-Equity Lines of Credit
There was hardly any change in credit standards over the past three months for HELOCs.
While 27 percent of the the 66 banks that make HELOCs said demand had risen, 17 percent noted weakened demand.
CRE Loans
On non-farm commercial mortgages, 17 percent of large banks noted tightening in credit standards.
More than a fifth of large banks indicated demand had risen for CRE loans.
Conditions in the commercial mortgage-backed securities market have led to a decline in CRE loan originations during the past six months at 12 percent of large banks. CMBS conditions, however, pushed up volume at nearly a quarter of large banks and 11 percent of non-large banks.
But half of large banks indicated that loan securitizations have fallen over the past half-year due to the CMBS market.
Nearly half of
large banks indicated that they have made it harder to get a multifamily loan. At other banks, just over a fifth noted tightening.
While multifamily loan demand rose at more than a fifth of smaller banks, the share was less than 18 percent at large banks.
In addition, 13 percent of large banks said multifamily demand dropped.
During the past three months, credit standards on construction-and-development loans have tightened at over a third of large banks. Just 11 percent non-large banks noted tightening.
Demand for C&D loans was up at a quarter of banks and down at 12 percent.
