Fed survey: bank lending tight through mid-2010 - KWWL - Eastern Iowa Breaking News, Weather, Closings

Fed survey: bank lending tight through mid-2010

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WASHINGTON (KWWL) - The Federal Reserve says most banks expect their lending to remain tight through the second half of next year, with the exception of mortgage standards, which already are loosening a bit.

The Fed's latest survey of loan officers found that about 20 percent of U.S. banks tightened their lending standards on prime home mortgages in the April-June quarter, down from around 50 percent in the previous quarter.

Meanwhile, 45 percent of banks say they tightened standards on nontraditional mortgages, such as adjustable-rate loans with multiple payment options, down from 65 percent in the previous survey.

Getting banks hurt by the financial crisis to boost lending is critical to a sustained economic recovery.

Online News Director Nate Leding

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