NATNews Blog > April 2016 > Mortgage Credit Availability Decreases Slightly

    Mortgage Credit Availability Decreases Slightly

    4/12/2016 9:11:21 AM
    Mortgage credit availability slightly decreased in March according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from Ellie Mae's AllRegs Market Clarity business information tool.
     
    The MCAI decreased 0.2 percent to 123.5 in March.  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. Of the four component indices, the Government MCAI saw the greatest loosening (up 0.9 percent) over the month while the Conventional MCAI saw the most tightening (down 1.6 percent). The Jumbo MCAI decreased 0.2 percent, while the Conforming MCAI decreased 0.4 percent over the month.
     
    "On net mortgage credit availability tightened very slightly in March. Administrative changes drove declines in the availability of conventional and super conforming loan programs, and those were partially offset by slightly relaxed lending standards on government lending programs which includes FHA, VA, and RHS," said Lynn Fisher, MBA's Vice President of Research and Economics.
     
    Conventional, Government, Conforming and Jumbo MCAI Component Indices
     
    MBA now reports on five total measures of credit availability as part of the monthly MCAI release: the Total Mortgage Credit Availability Index, the Conventional Mortgage Credit Availability Index, the Government Mortgage Credit Availability Index, the Conforming Mortgage Credit Availability Index, and the Jumbo Mortgage Credit Availability Index, with historical data back to 2011.
     
    Of the four component indices, the Government MCAI saw the greatest loosening (up 0.9 percent) over the month while the Conventional MCAI saw the most tightening (down 1.6 percent). The Jumbo MCAI decreased 0.2 percent, while the Conforming MCAI decreased 0.4 percent over the month.