Posted To: MND NewsWire

The Mortgage Bankers Association’s (MBA’s) Mortgage Credit Availability Index (MCAI) continued to drop in August, an indication that lending standards are tightening. The index fell by 4.7 percent to 120.9 in August. In January, before interest rates started an unprecedented decline and servicers were instructed to grant forbearances to existing borrowers, the MCAI was at 181.9. It was benchmarked to 100 in March 2012. Each of the four component indices moved lower. The Conventional MCAI decreased 8.7 percent, while the Government MCAI decreased by 1.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 8.9 percent, and the Conforming MCAI fell by 8.6 percent. “Mortgage credit supply fell to its lowest level since March 2014, driven by a reduction in supply…(read more)

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Source: Mortgage News Daily