The new mortgage rules are a speed bump for mortgage lending. The problem will last at least as long as bankers calibrate their compliance systems, and perhaps much longer.
In more positive news, the survey found that the foreclosure rate dropped from 0.98% in 2012 to 0.73% in 2013, while the single-family home delinquency rate fell from 2.4% to 1.87%. The 30-year fixed-rate mortgage extended its dominance of the housing market, growing to 50.3% of all loans from 46.3% in 2012.
Commercial real estate loan demand remained stagnant at 5%, and the CRE delinquency rate remained little changed at 3.3% in 2013. A total of 208 banks responded to the survey, 76% from institutions with less than $1 billion in assets.
Read the survey results.