U.S. Banks Underwriting Standards At Pre-Crisis Levels: OCC

U.S. banks took on more credit risk with both retail and commercial loan products through easing of underwriting standards over the past three years, warns the OCC. The Office of the Comptroller of the Currency’s “2015 Annual Survey of Credit Underwriting Practices” covered loans totaling $5.1 trillion, about 94% of all loans in the federal banking system. For third straight year, banks eased underwriting standards Striking a warning tone, the OCC report cautions that banks have loosened underwriting standards for the third year in a row, reaching levels that are now similar to the 2005-7 period before the financial crisis…