Industry NewsMarkets & Economy

Most banks tighten standards for prime loans

Real estate roundup

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Fed survey: Lending standards tighten further A record three in four banks tightened standards for prime mortgages during the second quarter, according to a Federal Reserve survey of bank loan officers, and 30 percent said demand for such loans was lower. Of the 32 lenders still writing nontraditional mortgages like interest-only loans, 85 percent said they'd tightened standards and 45 percent said demand for such loans had fallen. Six of seven remaining lenders originating subprime loans said they'd tightened standards in the last three months, but only two said demand had fallen. S&P: Fannie, Freddie pose greater risk to government Standard & Poor's Ratings Services has lowered its "risk to the government" ratings for Fannie Mae and Freddie Mac and affirmed rating on the companies’ senior unsecured debt, reflecting "the strong explicit and implicit U.S. government support" those securities hold in the marketplace. Standard & Poorâ...