Mortgage credit availability decreased in January 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 0.4 percent to 123.8 in January. 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 Conforming MCAI saw the greatest tightening (down 1.5 percent) over the month followed by the Government MCAI (down 0.8 percent). The Conventional MCAI was unchanged, while the Jumbo MCAI increased 0.2 percent over the month.
Credit availability decreased over the month, driven by a decline in some FHA and conventional offerings as compared to the previous month. These declines in the MCAI were only partially offset by loosening among adjustable rate mortgage (ARM) and jumbo lending programs," 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
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 Conforming MCAI saw the greatest tightening (down 1.5 percent) over the month followed by the Government MCAI (down 0.8 percent). The Conventional MCAI was unchanged, while the Jumbo MCAI increased 0.2 percent over the month.