Lending standards for loans tightened during the second quarter of 2022, according to the Federal Reserve's senior loan officer opinion survey released today. Lenders also reported no change in standards for consumer loans throughout the survey period.
- C&I. Banks reported having tightened standards on commercial and industrial loans to firms of all sizes after several quarters of continued easing this past year and unchanged standards in the last quarter. Tightening was most widely reported for premiums charged on riskier loans. Simultaneously, a majority of banks reported stronger interest in loans from large and middle-market firms even though an inferior percentage reported stronger demand from small firms.
- CRE. A significant net share of banks (20%-49%) tightened standards for all real estate loan categories. Moderate net shares of banks (10-20%) reported weaker interest in construction and land development loans and for nonfarm nonresidential loans. A modest net share of banks (5%-10%) reported stronger interest in loans secured by multifamily properties.
- Mortgages. On net, banks reported no alternation in lending standards for many mortgages. However, an average net share of banks tightened standards for subprime residential mortgages, while modest net shares of banks tightened standards for QM jumbo and non-QM non-jumbo residential mortgages, as well as for HELOCs. Most banks reported weaker interest in all RRE loans within the second quarter, except for HELOCs, which experienced stronger demand.
- Personal lending. Lending standards for those consumer loan categories-credit card loans, auto loans along with other consumer loans-remained basically unchanged. Banks also reported most terms on credit card loans remained unchanged. The exception was a modest net share of banks that reported having increased (i.e. eased) credit limits. Banks also reported, on net, leaving most terms on automotive loans and other consumer loans unchanged.
