Mortgage credit availability increased in December 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 increased 0.6 percent to 175.2 in December. 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 increase in availability over the month (up 1.3 percent), followed by the Conventional MCAI (up 0.7 percent), the Government MCAI (up 0.6 percent), and the Conforming MCAI (up 0.04 percent).
"Credit availability was up for the fourth consecutive month in December driven by jumbo loan programs as well as loan programs for borrowers with lower credit scores and low down payments," said Lynn Fisher, MBA's Vice President of Research and Economics.
Source: Mortgage Bankers Association; Powered by Ellie Mae's AllRegs® Market Clarity®
CONVENTIONAL, GOVERNMENT, CONFORMING, AND JUMBO MCAI COMPONENT INDICES
Of the four component indices, the Jumbo MCAI saw the greatest increase in availability over the month (up 1.3 percent), followed by the Conventional MCAI (up 0.7 percent), the Government MCAI (up 0.6 percent), and the Conforming MCAI (up 0.04 percent).
Source: Mortgage Bankers Association; Powered by Ellie Mae's AllRegs® Market Clarity®