Given the current state of the economy, some lending companies are softening the credit standards to get approved. This is a response to the recent spike in mortgage interest rates: people can’t afford them, they can’t qualify for them, so they’re just not getting them. Most lenders are countering this shrinking demand with lower credit qualifications. According to Polyana da Costa at Bankrate,
“Some mortgage lenders have loosened credit standards for homebuyers as demand for loans from refinancers slows, a Federal Reserve survey shows.”
“As the demand from refinancers shrinks, homebuyers get faster service from their lenders. About 44 percent of the lenders say the time for closing from the day of application has somewhat reduced since the volume of refinances fell.”