Credit Not Driving Demand; Mortgage Market Needs a Boost -Wells Fargo

Senior loan officers who responded to the Federal
Reserve’s quarterly survey of bank lending practices in October reported that
changes to bank lending standards for residential mortgage loans or home equity
lines of credit (HELOCS) over the previous three months were on net minor.  Changes in demand for those loans was also
largely around the edges.

Seventy-two banks responded to questions on prime
residential mortgages, equally divided between “large banks,” those with total
domestic assets of $20 billion or more, and “other banks.”  The number of respondents dropped
significantly for questions regarding non-traditional mortgages (35 banks, 20
of them “large”) and sub-prime mortgages. 
Only six banks, again equally divided by size, answered questions in the
latter category while 62 banks said they made no such loans.


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