The balance has been shifted in the mortgage lending world. According to a recent report more bankers believe that mortgage lending is being restricted by increases regulations.
"The increased regulatory burden created by the Dodd-Frank Act restricted bank residential lending in 2017, especially when it came to non-qualified mortgages, according to an American Bankers Association survey," according to National Mortgage News.
"Slightly more than half of the banks, 52%, said they primarily originated loans that met the qualified mortgage standard, and whatever non-QM lending they did was to targeted markets, the ABA's Real Estate Lending Survey found. This was up from 45% in 2016."
An American Bankers Association infographic shows that both QM and loans with no regards to QM are down from 2016-2017. Meanwhile, targeted non-Qm loans seem to have picked up from 2016-2017.
"The survey shows how the current rules are making it difficult for banks to fully serve their communities," said Robert Davis, the ABA's executive vice president in charge of mortgage markets, according to NMN.
"The good news is Congress is currently considering legislative changes that would allow a greater portion of creditworthy borrowers' access to mortgages."
To learn more about the current state of mortgage lending, concerns over regulation and how it could be remedied, click on the image above.