Banks Report Standards On Most Loans Are Unchanged, As Some Segments Weaken

WASHINGTON—Banks' lending standards on all categories of residential real estate loans either eased or remained mostly unchanged as demand for all categories of these loans weakened, according to the Federal Reserve's third-quarter senior loan officer survey.
The survey indicated that there was modest easing for conforming jumbo loans and those eligible to be sold to the government-sponsored enterprises. The other loan categories were left unchanged.
The surveyed banks also reported that in the past three months they tightened their lending standards on credit card and auto loans, while demand for these loans remained mostly unchanged. On auto loans, lenders tightened their terms on rate spreads, down payment requirements and minimum credit scores.
This senior loan officer survey was based on responses from 72 domestic banks and 23 U.S. branches and agencies of foreign banks.
The survey further found that banks eased their standards and terms on commercial and industrial loans while demand for these loans weakened. Banks' standards on most categories of commercial real estate loans remained almost unchanged, but these loans also saw a declining demand.