Video: What’s the Word on Mortgage Lending Standards? Better.
Mortgage lending regulations, along with mortgage interest rates, are fickle. Just when you think you’ve got a handle on them, they will change. Fortunately for home buyers mortgage lending standards have recently been changing for the better.
At the end of last year and the first quarter of this year, lending regulations loosened considerably for condominiums. They still have a ways to go but due to these developments, condos are beginning to regain some of their value.
There has been little activity in the area of mortgage lending standards so far this Spring but there’s much rumor and innuendo floating around about mortgage credit availability and further easing of regulations and requirements.
Mortgage rates are not much higher now than at this time 1 year ago. Rates are still remarkably low at barely above 4% on a 30-year home loan, and less than 3.5% for 15 year.
For your convenience and accessibility, you’ll find a transcript directly below this video.
Video Transcript: What’s the Word on Mortgage Lending Standards? Better.
A growing number of bankers anticipate tight lending standards will begin loosening soon.
Welcome to Today’s News Update, I’m Jenny Dunn.
A report in Real Estate Economy Watch says one in five bank risk professionals now expect less stringent approval criteria for home loans. That’s up sharply from the 4th quarter when only 12 percent of bankers surveyed expected lending standards to be relaxed.
The survey was conducted for FICO by the Professional Risk Managers International Association. It contains mostly positive news for the housing industry, with 71% of banking industry respondents say home prices are rising at what they termed a sustainable pace for mortgage lending risk. Also, 84% expect the number of mortgage delinquencies to drop or remain flat.
The survey does however reveal some concerns. Forty two percent of bankers fear the supply of credit will slightly or significantly short of demand for new mortgages. Six in ten were confident there will be sufficient credit available for refinancing.
We hope this information is helpful to you, thanks for watching, see you next time.
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Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
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