Game Change

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 13 of 83

The pulse Risky Business Credit fears are beginning to lessen, and lenders are beginning to feel better about lending. According to a recent report, the good news is expected to continue well into the year. B orrowers and lenders are both noticing the activity surrounding interest rates and credit restrictions in terms of lending in mortgage banking. As rates continue to rise, restrictions around credit are starting to slip, largely because consumers are managing their finances better in this still struggling economy. FICO released a quarterly report showing that the credit gap—the chasm between demand and supply for credit—is beginning to shrink and may altogether disappear sooner than later. The researchers who compiled the data found that 60 percent of those surveyed expected both the amount of credit requested by consumers and the amount of credit extended by lenders to increase during the next six months. Such findings are giving the experts reason to believe that the credit crunch will reach equilibrium by mid-2013. Delinquencies Expected to Drop: Most respondents said they expected to see decreases in every type of loan, except student loans: {76%} Car Loans 12 | The M Report {75%} Credit Cards {44%} Student Loans {77%} Small Business Loans {85%} Home Equity Lines {88%} Residential Mortgages

Articles in this issue

Archives of this issue

view archives of TheMReport - Game Change