Tighter Lending Policies … Closing The Barn Door

A recent survey conducted by The Federal Reserve, showed that 41 percent of banks say they have tightened their lending practices, compared with 15 percent when last surveyed in July.

The Fed's survey, which was conducted in early October, found that 41 percent of banks responding said they had tightened loan standards either "considerably" or "somewhat" for prime residential mortgages, or loans offered to borrowers with solid credit histories. In addition, 60 percent of the banks that offered nontraditional mortgages say they have tightened up lending standards, up from 40 percent in July.[tags]mortgage loans, home loans, home mortgages, loan standards[/tags] San Diego real estate