Daily Real Estate News | Friday, June 29,
The housing industry has blamed banks’ tight mortgage standards as preventing
many potential buyers from being able to purchase a home. But a new survey by
the Office of the Comptroller of the Currency shows that more banks are finally
easing up on their standards, which may open the doors for more buyers to
qualify for a mortgage.
About a quarter of the banks reported tighter underwriting standards for home
loans, which is down from 40 percent last year, according to the survey of 87 of
the largest banks. Ten percent of the banks surveyed say they’ve eased their
standards on mortgages, compared to only 8 percent who said that last year.
"This year's survey showed the continued normal progression toward stable or
easing underwriting standards as the economic environment stabilizes," says John
Lyons, chief national bank examiner at the OCC. "Examiners will be focusing on
underwriting standards as banks ease standards to improve margins and compete
for limited good loans."