Erika has disabled comments on her nice post from the AR readers, but not the re blogging ability. So here is the comment I would have written.
I don't think that the requirements need to be loosened so much as the big banks need to quit sitting on the funds. They are sitting on billions and billions of dollars, partially due to the low interest rates they would have to charge in today's market, but really they are sitting on the money because THEY CAN!
A side note. This re blog puts me over 200,000 points, not that I was counting. Right.
According to a new report released last week by Capital Economics, the housing crisis is expected to end this year as banks loosen their credit standards. The report shows an average credit score needed to obtain a mortgage is now 700. The number is still higher than it was before the crisis, but it is much better than a year ago.
Another survey from the Federal Senior Loan Officer, shows credit requirement in the last quarter of 2011 were consistent with the prior three quarters. Combined with these reports, there are many indicators that point to housing stabilization and more available credit. Now, banks are lending up to 3 ½ times the borrowers earnings. This is an increase from 3.2 during the crisis.
In addition, many banks are loosening the loan-to-value ratios, which is a clear sign of improved credit conditions. Many banks are now lending an average of 82 percent, which is higher than the 74 percent lending average in 2010.
However, even though there has been some slight loosening on credit conditions, many potential buyers are still having trouble meeting the credit requirements. Capital Economics reports 8 percent of potential buyers could not qualify for the loan, which ended up cancelling many contracts.
While the news of loosed credit standards opens the doors for great opportunities, it does not mean there will be actual housing price gains across the nation.
Originally posted at: http://livinginstgeorge.com/2012/01/31/housing-crisis-horizon-banks-loosen-credit-standards/
Erika Rogers, your St George real estate specialist
Stout & Associates Realty
Please feel free to contact me at 435-229-8801 if I can assist you in any way with St. George Utah Real Estate or St George Utah Homes for Sale. You can also search the entire St George Utah mls from my Facebook page. Check it out!
Get a free QR Scanner for Your SmartPhone
Scan QR Code to View My Mobile Site
Want a great REALTOR in Tucson?
Jon Quist, ABR, CRS, ePRO, GRI
LONG REALTY
Tucson's BUYERS ONLY Agent
6410 E TANQUE VERDE ROAD
Tucson, AZ 85715
520-850-5995 Direct
800-557-9798 Toll Free
520-546-1978 Fax
Email : TucsonAgent@msn.com
Jon - I suspect most would love to see the end of the housing crisis as it would mean the economy is returning to an upward trend
Congratulations on the 200k mark! So glad to see your blogging progressing! Great repost!
Hi Jon, thanks for the reblog and congrats on the hitting 200k! (Sorry I had the comments disabled)
Jon ... We hope that lenders will loosen some standards and need for documents during last 3 days of underwriting - will help lead to real estate recovery - while being careful to protect investors.