Fed survey: Lending standards tighten further
A record three in four banks tightened standards for prime mortgages during the second quarter, according to a Federal Reserve survey of bank loan officers, and 30 percent said demand for such loans was lower. Of the 32 lenders still writing nontraditional mortgages like interest-only loans, 85 percent said they'd tightened standards and 45 percent said demand for such loans had fallen. Six of seven remaining lenders originating subprime loans said they'd tightened standards in the last three months, but only two said demand had fallen.