Although the net fraction of banks tightening lending standards on mortgage loans was about 50 percent in our most recent Senior Loan Officer Opinion Survey on Bank Lending Practices, it should be noted that most banks had already tightened their lending standards substantially in 2008.
Second, the shutdown of the private mortgage-backed securities market has placed greater pressures on bank balance sheets not only to provide credit to borrowers with damaged credit histories, but also to provide so-called jumbo mortgages that are originated in amounts that are over the conforming loan limits applicable to loans sold to or guaranteed by the governmentsponsored enterprises (GSEs) Fannie Mae and Freddie Mac and by Ginnie Mae.