Mortgage lending in the U.S. may plunge 36% in 2011 to its lowest level since 1997, according to Mortgage Bankers Association. High unemployment, borrowers’ weak credit and tighter lending have all contributed to the projection of $966 billion, down from $1.5 trillion in 2010. Jay Brinkman, chief economist at the MBA, said lenders are less willing to take a risk on granting mortgages if they feel they may have to repurchase the loans in the future.
