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."










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