Ninety-five percent of respondents to the American Bankers Association’s (ABA) 24th annual Real Estate Lending Survey described regulation as having a negative impact on business production and consumer credit availability.

The survey revealed that 91 percent of the typical bank’s mortgage loans made last year were qualified mortgages. This finding indicates a sharp decline in the extension of non-qualified mortgages, with the average percentage of non-QM loans falling from 14 percent in 2015 to 9 percent in 2016.

The results also show that more than 30 percent of banks are restricting lending to QM segments only, and 45 percent are making non-QM loans only to target markets or with other restrictions.

According to the survey, high debt-to-income levels in addition to insufficient documentation continue to be the most common factors prohibiting mortgage loans from meeting QM standards.

“Non-qualified mortgage loans have been subject to heightened regulatory requirements and risk, reducing the willingness of banks to extend these loans to even the most creditworthy borrowers,” Robert Davis, ABA executive vice president, said in a statement. “Despite ongoing regulatory hurdles, community banks remain resilient in their ability to manage risk levels, increase productivity and introduce more first-time homebuyers into the market.”