For those in the market who believe bank lending criteria has gotten too tight, a recent survey from Fair Isaac Corporation (FICO) has some good news.

FICO’s quarterly survey of U.S. bank risk professionals found that lenders expected the supply of credit to satisfy demand for all types of consumer loans through the end of 2012. This is a change from the first quarter when survey respondents expected the supply of credit for residential mortgages to fall short of demand.

Approximately 55% of the respondents said they expected mortgage credit for the rest of this year to at least meet if not exceed or significantly exceed demand. But, about 38% of those surveyed said mortgage credit availability should fall slightly short of demand, with 7% saying it would be significantly short of demand.

Andrew Jennings, head of FICO Labs, said, “I was particularly struck by the numbers for residential mortgages and small business loans. Those are two areas where credit has been tight over the past few years. If lenders are ready to extend more credit to those borrowers, it could provide a stimulus for the U.S. economy.”

More than 35% of survey respondents expected the approval rate for all types of consumer credit applications to increase over the next six months.

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