Ninety percent of the typical bank’s mortgage loans made last year were “qualified mortgages,” according to the American Bankers Association’s 22nd annual Real Estate Lending Survey.
The survey revealed that nearly 80% of respondents expect the Consumer Financial Protection Bureau’s mortgage lending rules will continue to cause a reduction in credit availability with 19% characterizing the impact as severe, reports Trey Garrison of HousingWire.
The most likely reason for a mortgage loan not meeting QM standards was high debt-to-income levels followed by lack of required documentation.
Despite these setbacks, bankers can boast some positive results.
The 182 respondents, 77% with assets less than $1 billion, reported the highest percentage of loans to first-time homebuyers in the survey’s 22 year history.
