Mortgage credit loosens

by MPA13 May 2015
Mortgage credit availability was up slightly in April, according to new data from the Mortgage Bankers Association.

The MBA’s Mortgage Credit Availability Index (MCAI) increased o.5% to 122.0 last month. A decline in the MCAI means that lending standards are tightening, while an increase indicates loosening credit. The index was benchmarked at 100 in 2012.

Of the MCAI’s four component indices, the Government MCAI saw the greatest loosening of credit, rising 1.1% over the month of April. The Jumbo MCAI was up 0.8%, while the Conforming MCAI rose 0.2%. The Conventional MCAI saw slight credit tightening, down 0.6%.

“The increase was driven by new offerings of FHA’s 203K home improvement program, new VA offerings and new jumbo products,” said MBA chief economist Mike Fratantoni. “The increase was partially offset by some investors tightening underwriting criteria on conventional cash-out offerings.”