More
than 80 percent of bankers expect that the Consumer Financial Protection
Bureau’s new mortgage rules will constrict mortgage credit, according to the
results of ABA’s latest Real Estate Lending Survey released today. Two-thirds
of survey respondents said they would restrict their mortgage lending to
Qualified Mortgages or to non-QM loans in targeted markets only.
“The new mortgage rules are a speed bump for mortgage lending,” ABA EVP Bob
Davis said. “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 percent in 2012 to 0.73 percent in 2013, while the single-family home
delinquency rate fell from 2.4 percent to 1.87 percent. The 30-year fixed-rate
mortgage extended its dominance of the housing market, growing to 50.3 percent
of all loans from 46.3 percent in 2012.
Commercial real estate loan demand remained stagnant at 51 percent, and the CRE
delinquency rate remained little changed at 3.3 percent in 2013. A total of 208
banks responded to the survey, 76 percent from institutions with less than $1
billion in assets.
---ABA Daily Newsbytes
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