Mortgage credit availability decreased in August according to the Mortgage Credit Availability Index (MCAI), a report from the
The MCAI decreased 0.3 percentage points from 116.4 in July to 116.1 in August. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. The index was benchmarked to 100 in
"While overall access to credit tightened in August, we did see some loosening in certain segments of the purchase market," said
The FHA 203(k) loan allows borrowers to include renovation expenses in their loan amount. One-time-close loans streamline the purchase and financing of new construction.
NEW CONVENTIONAL AND GOVERNMENT COMPONENT INDICES
Last month, MBA began reporting on two additional measures of credit availability as part of the monthly MCAI release: the Conventional Mortgage Credit Availability Index and the Government Mortgage Credit Availability Index, with historical data back to 2011.
The Conventional and Government MCAIs, which are component indices of the Total MCAI, are constructed using the same methodology and are designed to show relative credit risk/availability for conventional and government (FHA/VA/
Both the Conventional MCAI and Government MCAI decreased less than one percentage point.
EXPANDED HISTORICAL SERIES
The Total MCAI has an expanded historical series which gives perspective on credit availability going back 10-years (expanded historical series does not include new Conventional or Government MCAI). The expanded historical series covers 2004 through 2010, and was created to provide historical context to the current series by showing how credit availability has changed over the last 10 years - this includes the housing crisis and ensuing recession. Data prior to
ABOUT THE MORTGAGE CREDIT AVAILABILITY INDEX
The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit.
The MCAI is calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.). These metrics and underwriting criteria for over 85 lenders/investors are combined by MBA using data made available via the AllRegs Market Clarity product and a proprietary formula derived by MBA to calculate the MCAI, a summary measure which indicates the availability of mortgage credit at a point in time. Base period and values for total index is
To learn more about the AllRegs Market Clarity platform click here. (http://answers.allregs.com/MCAI-Market-Clarity)
For more information on the Mortgage Credit Availability Index, including Methodology, Frequently Asked Questions and other helpful resources, please click here or contact MBAResearch@mba.org.
First introduced in 1989, AllRegs is used by virtually all of the top 100 lenders as well as throughout numerous governmental agencies, including
AllRegs Sales Inquiries: For more information, contact your Regional Account Executive (800) 848-4904 or firstname.lastname@example.org
[Category: Financial Services]
TNS 24HariCha-140905-30Furigayjane-4848020 30FurigayJane
Most Popular Stories
- Businesses, Investors Pressing for Green Policy
- Who's Next? More Nude Celeb Pics Hacked, Leaked
- Tips for Hiding, Securing Data on Smartphones
- ISIS Calls for Jihad Against 'Filthy French'
- Hispanic Enterprises Drive U.S. Economy
- Would You Trade Privacy for Job Security?
- Cristela Gets a Big Thumbs Up
- Iran Says Syria Strikes Illegal
- Fed in No Rush to Raise Interest Rates
- Lower Used-Car Prices Roil the Auto Industry