Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Monday, April 7, 2014

Survey: QM Rules to Constrict Mortgage Credit

More than 80% of bankers expect that the CFPB’s new mortgage rules will constrict mortgage credit, according to the results of ABA’s latest Real Estate Lending Survey. Two-thirds of survey respondents said they would restrict their mortgage lending to Qualified Mortgages or to non-QM loans in targeted markets only. ABA EVP Bob Davis said:

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.

No comments:

Post a Comment

Please read our comment policy before making a comment.