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Wednesday, February 3, 2016

Lenders Tighten Lending Standards for Some Loans


A new Federal Reserve survey of senior loan officers reveals that lenders tightened standards on commercial and industrial loans and commercial real estate loans in the fourth quarter of 2015. Survey respondents expect further tightening this year, citing the uncertainty surrounding economic forecasts and concerns about the performance of the oil and gas industries. They indicated that rising interest rates and delinquencies on many types of commercial loans are likely. However, they reported stronger demand for commercial real estate loans during the quarter. Meanwhile, some lenders reported easing standards for residential mortgages, including jumbo loans, and expect mortgage standards to further ease this year.

From "Lenders Tighten Lending Standards for Some Loans"
Wall Street Journal (02/01/16) Harrison, David

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