Mortgage credit availability decreased in April according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from Ellie Mae's AllRegs® Market Clarity® business information tool.

The MCAI decreased 0.89 percent to 122.4 in April. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. Of the four component indices, the Jumbo MCAI saw the greatest tightening (down 1.4 percent) over the month while the Conforming MCAI saw the most loosening (up 0.1 percent). The Conventional MCAI decreased 1.0 percent, while the Government MCAI decreased 0.7 percent over the month.

"Mortgage credit became less available in April as a result of two opposing trends, resulting in a net decrease to the index," said Lynn Fisher, MBA's Vice President of Research and Economics. "Investors continued to roll out Fannie Mae and Freddie Mac's low down payment loan programs, which had a loosening effect on credit availability. However, this was more than offset by tightening among high balance and jumbo loan programs."



Source: Mortgage Bankers Association; Powered by Ellie Mae's AllRegs® Market Clarity®

CONVENTIONAL, GOVERNMENT, CONFORMING, AND JUMBO MCAI COMPONENT INDICES

MBA now reports on five total measures of credit availability as part of the monthly MCAI release: the Total Mortgage Credit Availability Index, the Conventional Mortgage Credit Availability Index, the Government Mortgage Credit Availability Index, the Conforming Mortgage Credit Availability Index, and the Jumbo Mortgage Credit Availability Index, with historical data back to 2011.

Of the four component indices, the Jumbo MCAI saw the greatest tightening (down 1.4 percent) over the month while the Conforming MCAI saw the most loosening (up 0.1 percent). The Conventional MCAI decreased 1.0 percent, while the Government MCAI decreased 0.7 percent over the month.