Survey Finds Mortgage Credit Starting to Ease

Stringent mortgage standards have kept many potential home buyers on the sidelines the last few years. But 8 percent of banks say they’ve loosened up their mortgage standards in the last three months, according to the Federal Reserve’s latest Senior Loan Officer Survey. The survey shows that credit conditions have either held steady or loosened for eight of the past nine quarters. 

Banks also reported they may be more open to increasing their mortgage business soon. Twenty-seven percent of the banks surveyed say they plan to shore up their residential mortgage assets within the next year, according to the survey.

Nearly 40 percent of banks also reported they’ve seen a rise in mortgage demand in the last three months.

Ellie Mae recently reported that 60 percent of home purchase applications in March were approved—up from 55 percent year-over-year.

Still, despite progress, mortgage conditions remain tight and applicants must still meet high standards—such as 20 percent down payment or high credit score requirements. 

“Fear Fannie Mae and Freddie Mac will force lenders to take back risky mortgages continues to be the primary condition constraining lending,” RealtyTrac reports. “Other conditions that have lenders holding tight to mortgage purse strings include obtaining insurance, slow economic growth, concerns about securitization, and processing capacity.”

Source: “Mortgage Squeeze Loosens, Somewhat,” RealtyTimes (May 16, 2013)

Read more

Data Shows Mortgage Credit Easing, Others Not so Sure

 

About Ady Simion (Realtor and Public Notary)

Ady Simion was named in the Top 1% of all agents for NRT LLC a subsidiary of Realogy that operates a variety of real estate offices under brands such as Coldwell Banker, Sotheby's International Realty, Century 21, The Corcoran Group, and the technology-based brokerages ZipRealty and Climb Real Estate. NRT has 787 offices and 47,000 sales associates. Selling and buying property can be very stressful but with the right agent it can be profitable and a fun experience. Ady is also a Notary Public and being a people person he wants to help negotiate for his clients making their transactions as smooth as possible. Ady’s goals are simple: He wants to be the best source of information on the Los Angeles area Real Estate market, as he assists clients through each transaction with care and professionalism. He is proud of his large referral base of clients who have placed their trust in him over the years. Why him, when there are so many good people out there?!?! • Sellers will have their property exposed to the largest team of sales professionals in the world by far. Coldwell Banker Agents sale more homes than anyone else. • Buyers will have the opportunity to view more properties exclusively. • And most importantly when you hire him you get a whole team working for you not just “only one person”. Ady Simion started his Professional Career as an Insurance Agent, and then mastered the Mortgage Industry focusing on helping buyers and sellers achieve their life dreams. He now is an Agent with the Largest Residential Real Estate Company in the nation and the world, Coldwell Banker, at the Pasadena office which is the leader in the areas in which he specializes. After finishing College Ady has consistently been a Top Producer in every office/business he worked at. He speaks English, Romanian and Spanish. Real Estate is constantly changing and working with an agent that has been involved in the Real Estate buying/selling process most of his life is always beneficial for clients. Call, text or e-mail him or just stop by to say Hi and ask any real estate questions you may have.

Posted on May 17, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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