New Jumbo ARMs Send Credit Access Index Higher

The Mortgage Bankers Association credited an increase in thernnumber of jumbo adjustable rate mortgage (ARM) programs in July for a slightrnincrease in its Mortgage Credit Availability Index (MCAI).  The index, which analyzes data from the AllRegs® Market Clarity® product, increased from 115.8 in June torn116.4 in July.</p

A decline in the MCAI, which was benchmarkedrnto 100 in March 2012, indicates a tightening in lending standards.  An increase is indicative of creditrnloosening.  </p

MBA said the increase was many due to manyrninvestors adding new jumbo hybrid ARM products including 5/1, 7/1, 10/1, and inrnsome cases 3/1 loans.  There was alsornincreased availability of high balance FHA and VA loan programs and some slightrneasing in lender criteria for several programs which affected acceptablernminimum credit scores and maximum loan-to-value ratios, especially for FHA andrnVA loans.

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