Underwriting Standards Loosening as Origination Volume Declines, No Major Concerns About Performance Yet
November 1, 2018
With refinance volume declining, interest rates rising and home price appreciation cooling off, lenders are loosening underwriting standards. The trends could lead to higher delinquency rates than the pristine performance seen after the recovery from the financial crisis, but there’s not much to worry about at the moment, according to Moody’s Investors Service.