Mortgage credit tightens in August

by Ryan Smith13 Sep 2016
Mortgage credit availability tightened in August, according to new data from the Mortgage Bankers Association.

The MBA’s Mortgage Credit Availability Index, which analyzes data from Ellie Mae’s AllRegs Market Clarity tool, dropped 0.4% to 164.7 in August. A drop in the MCAI means lending standards are tightening, while a rise means credit standards are relaxing. The index was benchmarked to 100 in 2012, according to the MBA.

The MCAI consists of four component indices. Of those, the Conforming MCAI saw the biggest drop in credit availability, down 0.9%. The Government MCAI dropped 0.5% and the Conventional MCAI was down 0.2%. Meanwhile, the Jumbo MCAI increased 0.5%.

“Credit availability decreased slightly over the month, driven by one mid-sized investor closing their correspondent operations,” said Lynn Fisher, MBA vice president of research and economics. “Despite the loss of all the programs associated with this investor, the Jumbo MCAI increased by 0.5%, indicating that credit conditions continue to ease among jumbo loan programs.”

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