Mortgage Credit Availability Improves in October on New Programs: MBA
National Mortgage News
Mortgage credit availability improved in October as a result of new affordable housing programs, according to the Mortgage Bankers Association.
The Mortgage Credit Availability Index rose 1.5% to 128.4 for the month of October. An increase indicates a loosening of lending standards; a decrease indicates a tightening of them.
The increase was due to the new affordable housing loans, which require lower down payments, said the MBA's chief economist, Mike Fratantoni.
The index is calculated using loan program data from Ellie Mae's AllRegs Market Clarity product. In March 2012, the MCAI was benchmarked to 100.
The conforming MCAI reported the highest increase, with a 2.7% rise on a monthly basis. The government MCAI rose 1.9%, the conventional MCAI rose 0.8% and the jumbo MCAI rose 0.5%.
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