Federal Reserve Bank of Dallas’ Post

The recent changes to the responsible lending code are a major win for both borrowers and lenders. Borrowers can expect to see an easier process when applying for finance with less documentation required as expense verification criteria is eased. Conditions are slowly emerging for a ‘goldilocks’ market for home buyers, with finance requirements easing while interest rates started slowly creeping lower over the last couple of weeks. All eyes are now on the RBNZ’s August 14 OCR review for more clues around how the economy is tracking and what we can expect for interest rates.

Banking Conditions Survey: The decline in loan volume eased across all loan types, with the greatest stabilization in commercial real estate and consumer loans. Although bankers expect future activity and loan demand to decline, the slowdown is anticipated to be milder than prior expectations. https://lnkd.in/gWtSFumM

CU loan growth has slowed significantly in 2024 and will likely remain slow through 2025, although there is a potential lending growth opportunity as banks tighten underwriting , according to TruStage’s June Trends Report. Here are the latest findings, plus additional forecasts. https://lnkd.in/dDPQxMgk

Let’s look at the lending and debt environment today, an area where there has been a lot of activity lately. Banks have really pulled back in the face of higher lending risks. Total commercial real estate lending and borrowing was down an incredible 47% in 2023 and that is continuing this year.

Rising loan losses in the banking sector have CRE professionals on high alert. Discover how proactive cashflow management strategies and data-driven decision-making can help protect your portfolio in today’s challenging market. Read more here → https://ow.ly/6Uh650TrHkV

#Credit score ranges help lenders determine the risk of lending to a borrower. Learn more here. #finances

Maintaining a healthy credit score is vital for financial stability and future opportunities. Avoiding common credit mistakes can significantly impact your ability to secure loans, mortgages, and favorable interest rates.

#Credit score ranges help lenders determine the risk of lending to a borrower. Learn more here. #finances

#ALM Lower than expected loan growth and deposit rate cuts seems to be the theme with Q3 bank earnings. “"We all felt like some interest rate relief would really drive loan demand. And I think that's kind of proven to be not necessarily the case," Peter Sefzik, chief banking officer, said during a conference call on third-quarter results. Many borrowers are looking for further rate cuts of 50 basis points to 100 basis points, so "it does become a little more of even a second half of 2025 conversation about what does loan demand look like in the economy." “Comerica Inc. expects to cut deposit rates quickly in the fourth quarter after a drive for more customer interest-bearing deposits helped increase deposit costs in the third quarter.” https://lnkd.in/e3mfGqdg

FACT: Banks are pulling back on commercial credit approvals, and I work with commercial lenders to provide a powerful option for companies that need to prepare for and obtain capital. Info straight from the Federal Reserve: "Over the third quarter, significant net shares of banks reported having tightened standards on C&I loans to firms of all sizes. Banks also reported having tightened ..." ***Call me if you happen to know of any company that has been declined by a bank for a commercial loan/LOC request to see if I can help them through the process of preparing for and obtaining the capital they need with the goal of looping the client back to the bank once they can get approved. Green Zone Capital Advisors has an incredible process that puts the client first, and it all starts with a simple phone call (FREE) to determine if we are a good fit or not. #bank #commerciallending #business #capital #fed #interestrates https://lnkd.in/geNrzTDh