WASHINGTON—The Federal Reserve's fourth-quarter senior loan officer survey shows that banks' lending standards on consumer loans and for most categories of residential real estate loans remains mostly unchanged.
Lending standards tightened for commercial real estate loans, but loosened for commercial and industrial loans. Demand for residential mortgages, commercial real estate loans and auto loans weakened somewhat, while demand for credit card loans and other consumer loans remained basically unchanged, the Fed said.
The survey found banks indicating they believe loan performance will deteriorate for consumer loans, while real estate categories are expected to remain mostly unchanged.
In terms of the expected changes in household lending standards during 2018, "moderate net shares" of banks are expecting to ease standards of GSE-eligible and nonconforming jumbo residential mortgage loans; "modest net shares" are expecting to tighten standards for approving credit card loans. The lending standards for approving auto loan applications are expected to remain mostly unchanged, noted NAFCU in its analysis of the data.
The Senior Loan Officer Survey was based on responses from 71 domestic banks and 23 U.S. branches and agencies of foreign banks.