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According to the Federal Housing Administration’s first quarter report on Fannie Mae and Freddie Mac, the 12- month delinquency rate has returned to 2002 levels, meaning the percentage of people who’ve fallen behind on mortgages owned by those government-sponsored enterprises has declined considerably. This is great news for the housing market, but it seems current lending patterns aren’t adjusting to these trends.

Lenders are still reluctant to approve loans for even the most qualified borrowers. The need for less restrictive lending standards has been acknowledged by banking regulators but the process to correct this issue is moving slowly.

Story Springboard

Returning to Sensible Lending According to the 2011 NAR Profile of Home Buyers and Sellers, 39 percent of buyers said the mortgage application and approval process was more difficult than expected. That is substantially higher than in prior years. Talk to a Realtor® about how strict lending standards affect their clients. Do they see any improvement in their area? Talk to buyers about their experiences trying to obtain a loan.