Demand for Commercial Real Estate Loans Increases

By August 10, 2015 November 2nd, 2015 Commercial mortgages, Commercial Real Estate, Economy, Lenders

The Federal Reserve says demand for commercial, industrial, and commercial real estate loans rose in the second quarter, along with demand for home-purchase, auto, and credit card loans. The central bank’s survey of senior loan officers shows stronger home loan demand across most categories, including home equity lines of credit, and modest net fractions of banks eased underwriting standards, particularly for jumbo loans that comply with the Consumer Financial Protection Bureau’s qualified mortgage rules. However, most banks still do not give mortgages to subprime borrowers and have not eased lending standards for home equity lines of credit. Although residential real estate lending standards were “at least somewhat tighter” than the midpoints of the last decade’s ranges for all home-loan categories, a small number of banks tightened loan standards for credit cards or auto loans to subprime borrowers relative to midpoints for those loans over the same period. A “measured easing” of credit conditions for mortgages was seen mainly among GSE-eligible and government-insured mortgages.
via (wsj)