WASHINGTON — Mortgage lending grew among the top 21 banks getting government aid, the Treasury Department said.
Treasury on Wednesday released results from its monthly bank lending survey for February. It included data from the top 21 recipients of government investment through the Capital Purchase Program.
The program is part of the Troubled Asset Relief Program passed last year by Congress amid the financial market crisis, which saw stock prices plummet.
"Banks have been extending credit to homeowners and have enabled them to access affordable loans and reduce their borrowing costs," Treasury said.
The survey showed a median increase in residential mortgage originations across the 21 banks by 35%.
The median increase in mortgage refinancing was 42% from January.
Survey results for commercial real estate lending weren't so bright, Treasury said. "New loan demand remained low due to the lack of new construction activity," Treasury said.
Commercial and industrial lending weakened, Treasury said. "Uncertain economic conditions have resulted in borrowers reducing expenses, paying down debt, and delaying capital expenditure," Treasury said. The median decrease in renewal of existing loans was 14%.
