Guidelines Staying Steady as Lenders Prepared for QM in Advance

The availability of mortgage creditrnbounced back a bit in December the Mortgage Bankers Association (MBA) saidrntoday.  Its Mortgage Credit AvailabilityrnIndex (MCAI) increased 0.6 percent to 110.9 from 110.2 in November.  The uptick followed four straight months inrnwhich the Index declined.  </p

The MCAI analyzes data from the AllRegs® Market Clarity® product. rnA decline in the index indicates that lending standards are tightening.</p

MBA said credit availabilityrnwas little changed as investors continued to fine-turn credit score and LTVrneligibility matrices.  The associationrnsaid it appeared that many investors had previously made adjustments to accountrnfor new regulations from the Consumer Financial Projection Bureau which go intorneffect next week.   </p

The MCAI was benchmarked to 100 in Marchrn2012.  By way of context, MBA said had credit been tracked in such a way inrn2007 the index would have been at a level of roughly 800, indicating the creditrnwas much more available at that time.

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