Realtors Don't See Banks Easing Mortgage Lending Standards

Armen Hareyan's picture
Mortgage Loan Standards

On Monday, Nov. 2 Reuters published a story, which said that Fed survey showed banks easing or lower mortgage lending standards for borrowers. I asked several fellow Realtors and mortgage lenders to see if they feel any easing or lowering of mortgage lending requirements for their clients and most of the answers were negative. Here is what they said.

Chris Montcalmo, a mortgage consultant in a greater Baltimore area said that he has not seen any easing in his practice. "I have not seen any easing of standards with regard to my borrowers, personally," wrote Montcalmo in a written reply to HULIQ.

I went on and asked fellow realtors and mortgage brokers by posting a question about this topic in ActiveRain. The answers were mixed. People don't see any easing of mortgage lending standards.

Susan Emo, a realtor from Kingston ON, sent me a quote from one of her go-to mortgage broker. "Today's industry does not cater to well-off, retired, asset-based clients buying executive real estate," her mortgage broker wrote to Emo. Susan added that they cater to the loans that require no creativity or exceptions. "The typical 9-5 worker with a monthly pay cheque that remains the same, buying a cookie cutter home in the suburbs. Certainly not to my clientele," she wrote.

"There are some changes that have made the approval process a bit easier, I don't see these changes in the banks and they are sending me more business, not less, wrote Joe Petrowsky, a mortgage consultant from Manchester CT.

Patricia Kennedy of Evers & Company Real Estate thinks some banks certainly are making the mortgage lending standards lower. "There seem to be a lot more niche products for buyers who might be challenging to some of the large lenders," she comments.

But Joan Cox, a broker from Denver, CO, shared her client's experience, which was nothing like lowered mortgage lending standard. "I just closed a listing where a REALTOR (self employed) buying, and closed 3 days after contract date. He said he was put through the ringer. Not thinking they have eased," Cox wrote.

Here are few more answers.

Debbie Reynolds, Clarksville Real Estate Agent
I haven't seen any easing yet. In fact I have one loan I am trying to get closed and the bank is raking my client over the coals.

Paul S. Henderson a Realtor from Tacoma Washington
No it seems they are just changing the rules and the game!

Gabe Sanders, Stuart Real Estate Agent
Some may be, but others are continuing with some fairly ridiculous requests.

Perhaps this is something banks want the public to hear? asked one of the Realtors. Do you see any easing of mortgage lending standards in your practice for your borrowers or buyers? Also avoid these 4 mortgage mistakes when applying for a mortgage.

Reference: Reuters

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