MBA: Mortgage Credit Availability Declined 0.7 Percent in September

October 8, 2013
Banker & Tradesman 
mortgage lending news

Loan underwriting criteria are tightening, if the Mortgage Credit Availability Index (MCAI) is any indication. The reading for September was 110.7 -- a 0.7 percent drop from the previous month, according to the Mortgage Bankers Association (MBA), which documented a similar decline in August.

MBA's Mike Fratantoni attributed the trend to lenders increasingly eliminating products with loan terms that exceed 30 years and/or that have interest-only features. "Just as before, we believe this reflects lenders' implementation of the Ability to Repay/Qualified Mortgage regulation which comes fully into effect in January," Fratantoni explained. "Offsetting this tightening has been some increased willingness to offer higher LTV loans, particularly to jumbo borrowers."

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.