Researchers at the FRB of Richmond demonstrate how banks that gain local market share by acquiring an existing bank are likely to decrease FHA lending even while increasing conventional lending.

GSE refi business jumped and shifted toward borrowers with higher credit scores during the fourth quarter. With purchase mortgages, lenders also put a greater emphasis on LTV ratios below 81%.

Deliveries of high-risk purchase loans to the GSEs saw minor increases in the third quarter. But lenders expanded the credit for such loans in the refi sector. (Includes two data tables.)