203K, VA, and Jumbos Help Credit Availability in April

Incrementalrnincreases in credit access continued in April according to the Mortgage BankersrnAssociation’s Credit Availability Index (MCAI). rnThe Index increased 0.5 percent month-over-month to 122.0 in April, anrnincrease that indicates a loosening of credit. rnA decline indicates that credit standards are tightening.</p

“Mortgage creditrnavailability increased on net in April,” said Mike Fratantoni, MBA’s ChiefrnEconomist. “The increase was driven by new offerings of FHA’s 203K homernimprovement program, new VA offerings, and new jumbo products.  Thernincrease was partially offset by some investors tightening underwritingrncriteria on conventional cash out offerings.”  </p

Three of the four MCAI componentrnindices rose during the month as well with the largest change, +1.1 percent, inrnthe Government MCAI.  The Jumbo was uprn0.8 percent and the Conforming gained 0.2 percent.  The Conventional MCAI lost 0.6 percent.</p

The MCAI and its fourrncomponents are designed to show relative credit risk/availability based on informationrnabout borrower eligibility and underwriting criteria gathered for over 95rnlenders and investors and combined with data from Ellie Mae’s AllRegs MarketrnClarity product.  The MCAI wasrnbenchmarked to 100 in March 2012.  Basernperiod and values for the components vary.

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