Banks tightened lending standards for commercial real estate in third quarter: Fed survey

WASHINGTON (Reuters) - Banks tightened standards on commercial real estate loans during the third quarter but left lending practices for commercial and industrial loans virtually unchanged overall, according to a survey of loan officers released on Monday by the Federal Reserve.

For households, some banks reported easing lending standards on mortgages eligible for purchase by government-sponsored enterprises and some other types of mortgages. However, consumer loans remained much like the previous quarter.

On commercial real estate, “significant net fractions of banks reported tightening standards for construction and land development loans and loans secured by multifamily residential properties,” the survey said.

The Fed survey covered the third quarter of 2016, and included the responses of 69 domestic banks and 21 U.S. branches and agencies of foreign banks.

Reporting by Lindsay Dunsmuir; Editing by Meredith Mazzilli