I write 90% loans for a living and have found almost zero change from the banks perspective from 12 months ago. Most have open policy agreements with the insurers for amounts under $750K @ 90% and unless there are defaults or job jumping going on, I never get one declined.
However will agree that 95% loans and lo doc loans are harder than previously, and that will affect borrowing capacities.
On a related issue (maybe this should be a new thread...) purely from a moral point of view, people that borrowed money cheaply over the last few years have contributed in some small way to the crisis that unfolded, as it was ever increasing home prices that fuelled the market for CDO's etc. Now those same people are still able to borrow money as they have the equity and income from the increases, yet the people that didn't buy are having more trouble because 95% loans etc are harder to get. I suppose it's the same moral hazard of bailing out the banks, but the people who have the assets still hold all the cards...
Noel
