Regulators regulations (what?) have eased but the banks are scared about DOJ prosecution for their loans. This was a very consistent theme repeated over and over again at the Zelman housing conference. Repeated calls for the DOJ to clarify the rules about what the banks could be punished for. Until that happens the banks will continue the incremental credit overlays.
Great chart. Really highlights it.
Yeah, and thanks for finding it! No Kidding, I'd stored it a while back so today to find the URL I gooogled the image and hit your FR post where you'd originally shared it.