Dive Brief:

• The Federal Reserve completed a survey of banks that added ammunition to the argument, from organizations such as the National Association of Home Builders, that credit reforms imposed after the housing crash and recession are dragging on the industry's recovery.
• The results indicate that 20% of large banks told the Fed that Consumer Financial Protection Bureau lending standards have reduced their lending for what are termed prime conforming mortgages.
• For larger loans, however, 16 of the 36 banks that responded to the survey said their approval rate was below normal, and that was regardless of applicants' FICO scores.

Dive Insight:

The report that tight credit standards may be too tight in some cases comes at the same time that the Mortgage Bankers Association says its index to credit availability has been increasing from its March 2012 benchmark. The tighter credit for larger loans also suggests that the recovery could be stronger because it is high-end houses that have had the best results.