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Volume 10 - Number 12

June 10, 2011

Downloads Available: Top Bank/Thrift Borrowers of FHLBank Advances - 1Q11


Bank, Thrift FHLB Advances Decline in 1Q

The use of Federal Home Loan Bank advances among their bank and thrift members fell overall during both the first quarter of 2011 and on a yearly basis, with two of the three largest users showing a drop-off larger than the overall industry’s year-over-year rate of decline, according to the Inside Mortgage Finance Bank Mortgage Database.

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Poll

Are current mortgage underwriting standards too tough?

Yes, they don’t reflect current market conditions and need to be adjusted to allow borrowers with below 700 FICO scores and smaller downpayments to qualify for mortgages.
Yes, and something needs to be done to significantly reduce repurchase or buyback risk so that lenders don’t apply even tougher underwriting overlays.
No, the standards are appropriate given current risks and the major default problems the mortgage market has experienced over the past several years.

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