Although some investors are still holding tight to credit standards, mortgage credit availability loosened last month, according to a recent Mortgage Bankers Association report.

Analyzing data from Ellie Mae’s AllRegs Market Clarity business information tool, the MBA concluded that the Mortgage Credit Availability Index (MCAI) increased 0.5 percent to 122 in April.

The MCAI is a summary measure that indicates the availability of mortgage credit at a point in time. 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 March 2012.

Of the index’s four components, the Government MCAI saw the greatest easing and was up 1.1 percent over the month. Following that index was the Jumbo MCAI with an increase of 0.8 percent and the Conforming MCAI with an increase of 0.2 percent. The Conventional MCAI decreased 0.6 percent.

“Mortgage credit availability increased on net in April,” said MBA Chief Economist Mike Fratantoni. “The increase was driven by new offerings of FHA’s 203(k) home improvement program, new VA offerings and new jumbo products. The increase was partially offset by some investors tightening underwriting criteria on conventional cash out offerings.”

The MCAI is calculated using several factors related to borrower eligibility, such as credit score, loan type and loan-to-value ratio. These metrics and underwriting criteria for more than 95 lenders and investors are combined by MBA using data made available via the AllRegs Market Clarity product and a proprietary formula derived by MBA.

Email Amy Swinderman.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription