Tuesday, February 5, 2008

More Banks Stiffen Rules, Fed Finds

Washington Post (02/05/08) P. D3; Aversa, Jeannine
Creditworthy borrowers increasingly are finding it tougher to line up a mortgage, with the Federal Reserve reporting a jump in banks that are imposing stricter underwriting standards for prime loans to 55 percent of respondents in the January survey from 40 percent in November. The survey also indicates that standards for revolving home equity lines of credit were strengthened by 60 percent of banks. Business loans also are undergoing greater scrutiny. The central bank notes that both domestic and foreign banks anticipate weaker loan quality for consumers and businesses this year.

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