Mortgage Credit Availability Decreased In April

Mortgage credit availability decreased in April according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.

The MCAI fell by 0.4 percent to 107.9 in April. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. The Conventional MCAI decreased 0.6 percent, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 1.0 percent, and the Conforming MCAI rose by 0.5 percent.

“After three months of increases, mortgage credit availably decreased slightly in April as lenders tightened up on conventional loan programs with high LTV and low credit requirements,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Some of this tightening also impacted super jumbo loan programs, which resulted in a decline in the conforming jumbo index. Offsetting some of the April decline was a small increase in non-QM programs, a segment of the market that continues to grow. Overall, credit availability remains tight by historical standards, but mortgage originations activity has recently been impacted by mortgage rates, housing inventory, and the economic environment.”

Source: Mortgage Bankers Association; Powered by ICE Mortgage Technology

The MCAI fell by 0.4 percent to 107.9 in April. The Conventional MCAI decreased 0.6 percent, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 1.0 percent, and the Conforming MCAI rose by 0.5 percent.

Source: Mortgage Bankers Association; Powered by ICE Mortgage Technology

Data prior to 3/31/2011 was generated using less frequent and less complete data measured at 6-month intervals interpolated in the months between for charting purposes.