A moderately larger share of banks surveyed this summer said they eased standards for auto loans in the second quarter, according to Federal Reserve data.
The Fed survey of senior loan officers asked the bankers to report behavioral changes in the prior three months — essentially, to compare the second quarter of 2021 with the first.
According to the Fed, 11 of the 59 banks responding, or 18.6 percent, felt standards had eased somewhat.
Most bankers said they hadn't changed their practices. But a few lenders reported easing maturity maximums and lowering minimum down payments. Seven banks described accepting worse credit scores, though another bank reported increasing its minimum. Five banks said they narrowed the spread of interest rates offered to customers, indicating looser credit as well, while three others said they increased this range.
Consumers demonstrated a higher demand for auto loans during the second quarter, based on the loan officers' perspective. Out of 59 loan officers responding to the question, 21 felt demand had grown moderately or substantially in the past three months. Five bankers felt demand had weakened moderately. The remainder saw no change.