Consumer Financing Bank Survey

You'll need outstanding credit and a significant down payment to take advantage of lower home costs. And, if you already have a home equity credit line, don't be amazed to find that your equity isn't what it used to be, and your existing line of home equity credit may be decreased.

The Federal Reserve's second quarter lenders survey quantifies the current economic conditions for domestic and consumer lending.

Residential home loans and house equity loans:

More than 20% of the study respondents said they tightened up standards for prime home loans.
More than 46% stated they tightened credit requirements for non-traditional mortgages.
No data are readily available concerning availability of the riskier sub-prime home loans because less than 3 of the participants now use them.
More than 35% of lenders stated they made it harder for house owners to use their equity; more than 35% stated they reduced the limit on existing home equity lines of credit.
Consumer loans or credit cards:
10% of the lenders reported they were less willing to make consumer installment loans.
Approximately 35% stated they raised their requirements for accepted loans.
More than 50% tightened terms on new and existing credit cards.
Nearly 50% stated they reduced limitations of EXISTING credit card account limits.
Predicting the future
Now you know what does it cost? consumer and property funding has changed in the past few months, but exactly what about the future? The Federal Reserve study asked lending institutions to anticipate the future for domestic and consumer lending.

Prime mortgages or house equity credit limit:

Just 2% anticipated to make money any easier to come by for homeowners-- or potential house owners-- this year.
6% stated they 'd probably be more willing to lend start in the very first half of 2010.
Of those who anticipate easier days for real estate debtors, 27% planning to the 2nd half of 2010 for the change.
12% predicted money to flow more freely in 2011.
40% stated they do not anticipate to loosen their hold on residential loaning anytime in the foreseeable future.
Charge card and consumer loans:
Only 3% said they 'd be more generous with charge card loans this year.
Approximately 10% said their banks would be more likely to allow charge card loans early next year.
Practically 13% said credit card loans would get more info be much easier to obtain during the second half of 2010.
Nearly 30% anticipated they 'd chill out on credit card loans in 2011.
More than 30% stated their banks' tight requirements would remain the same for the foreseeable future.
Other consumer loans:
2% stated they 'd be more open to giving consumer loans later this year.
Simply over 6% stated consumer loans would be simpler to acquire in the very first half of 2010.
23% anticipated their banks would be more likely to authorize consumer loans in the 2nd half of 2010.
19% said there would be no easing of consumer loan standards till 2011.
25% stated their banks' financing standards would stay tight for the foreseeable future.
Exactly what does all this mean for consumers? If you currently have a mortgage or home equity loan, count yourself lucky, even if the terms or limits on your equity loan change; others who were counting on their house equity for things like a child's college education might not be as lucky.
If you have actually been thinking of taking out a loan to fund a vehicle, purchase brand-new furnishings or take a getaway, get ready for an uphill struggle, or delay your strategies till at least the end of 2011.

You may have already seen increases in interest and decreases in limitations if you currently have credit card debt. It may be time to discover an unsecured loan with much better terms prior to your credit card financial obligation buries you if so.

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