Only Quarter Of U.S. Banks Originate Subprime Auto Loans: Fed Survey

Only a quarter of domestic U.S. banks are in the business of originating subprime auto loans, a Federal Reserve survey released Monday showed. The Fed's senior loan officer survey found that only 19 of 76 domestic banks are in the subprime auto business. These banks report that they have not eased their subprime lending standards this year. The Fed said that data from the banks show that overall auto loans "have grown rapidly this year." According to the October Fed survey, banks continue to ease standards for loans to businesses, although underwriting requirements for these firms remain somewhat tighter than the average over the last 10 years. A small fraction of large banks eased standards on prime residential mortgages over the past three months, the survey found.