US Mortgage Credit Availability Index Falls Slightly in September

On Thursday, the Mortgage Bankers Association (MBA) reported that mortgage credit availability declined in September, according to its Mortgage Credit Availability Index (MCAI), which analyzes data from ICE Mortgage Technology.

The MCAI fell 0.2% to a reading of 107.1. A decline in the MCAI indicates tighter lending standards, while increases indicate looser credit. The index was benchmarked to 100 in March 2012.

The Conventional MCAI declined 0.4%, while the Government MCAI was unchanged. Within the Conventional MCAI, the Jumbo MCAI fell 0.3%, and the Conforming MCAI declined 0.2%.

Commenting on the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage credit availability decreased slightly in September, as lenders tightened documentation requirements on conventional loans and reduced offerings of loans that allow for cash-out refinances and investor home purchases. This tightening in credit supply also impacted jumbo loan programs, which saw credit availability decline for the second consecutive month. However, recent growth in non-agency loan programs continues to support this segment of the market. The government index was unchanged and has remained stable over the past three months.”