Easing Lending Standards?

A report published Monday by the Federal Reserve System suggests that lending policies and practices in the U.S. are, as a whole, tending to ease up for the first time since 2006. According to a cross-sectional opinion poll of Senior Loan Officers employed by both domestic banks and U.S. branches of foreign based banks, the relaxing of mortgage loan qualification standards comes partly from the average consumer applying and obtaining alternate sources of financing (i.e. credit unions and other non-bank lenders) and the competition that has created. It is important to note, however, that the ease in lending standards has been concentrated mostly in the larger banking institutions. Perhaps this will trickle down to our local hometown banks in the near future. Wouldn’t that be wonderful news for the Sevier County Real Estate market?