Mortgage lending capacity down 45 percent?

Mortgage lending capacity is down 45 percent because several of the nation’s largest lenders have pretty much stopped writing mortgages, according to Scott Simon, managing director of Pacific Investment Management Co. (PIMCO). The reluctance to originate loans reflects lenders’ fears of costly penalties for regulatory non-compliance, said Michael Fratantoni of the Mortgage Bankers Association. Source: Zillow blog.