Is it Harder to Get a Loan?

The Federal Reserve recently published their quarterly survey of 84 banks. The survey asks each bank to summarize it's trends and lending standards and if each bank's lending guidelines are becoming more or less restrictive.

About 75% of the surveyed banks said their standards have tightened for residential mortgage loans. To quote the somewhat dry language of the report, "Large majorities of domestic respondents reported having tightened their lending standards...over the previous three months. About 80%...noted that they had tightened their lending standards...for revolving home equity lines of credit."

Based on what I hear from clients and friends on the banking side, the percentage will probably approach 90% next quarter.