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Outstanding Loan Amounts Rise, But AD&C Credit Standards Tighten

Feb. 8, 2016

Eye on Housing reports that according to the Senior Loan Officer Opinion Survey, a net share of 12.7 percent of loan officers said that lending standards at their respective commercial banks tightened credit standards on loan applications for construction and land development loans or credit lines.

The net share marks the difference between respondents that said lending standards at their bank had eased and the number that said the lending standards at their bank had tightened.

Even with these tighter lending conditions, the FDIC has reported five consecutive quarters of year-over-year growth on the amount of outstanding development and construction loans. Smaller banks are home to the majority of these outstanding loans.

Click the link below for graphs and a more detailed look and analysis of the Senior Loan Officer Opinion Survey.

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