Mortgage Credit Access Bodes Well for Spring Market

Several factors combined to improve access to mortgagerncredit last month with the greatest gains coming in conforming loans.  The Mortgage Bankers Association (MBA) saidrnits Mortgage Credit Availability Index (MCAI) rose to 121.4 in March, arnmonth-over-month increase of 2.3 percent. rnAn increase in the index indicates that lending standards are easing.</p

Mike Fratantoni, MBA’srnChief Economist said, “A number of factors contributed to a loosening ofrncredit in March: Freddie Mac’s introduction of their 97 LTV program (FanniernMae’s was implemented in December), additional loosening of parameters on jumbornloan programs, an increase in offerings of cash-out refinance loans, andrncontinued expansion of the FHA streamline refinance and VA Interest RaternReduction Refinance Loan (IRRRL) programs. As a result of these changes, allrnfour component indexes of the MCAI increased last month: jumbo, conforming,rnconventional, and government.  Although credit remains tight by historicalrnstandards, this increase in availability, coupled with low rates and job marketrnstrength, should lead to stronger home purchase activity this spring.” </p

Of the four componentrnindices, the Conforming MCAI saw the greatest easing (up 3.0 percent over thernmonth) followed by the Conventional MCAI (up 2.4 percent). The Government MCAIrnand Jumbo MCAI both increased 1.8 percent over the month.</p

MBA assesses creditrnavailability each month, analyzing data from Ellie Mae’s AllRegs® Market Clarity®rnbusiness information tool.  The index wasrnbenchmarked to 100 in March 2012.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.