Originators pulling back on certain products as they prepare for the
The Mortgage Credit Availability Index fell 1.2% to 110.2 from
Lenders also continued cutting back offering programs with loan terms longer than 30 years and interest-only loans.
The index is calculated by the MBA using data from AllRegs’ Market Clarity. This decline brings MCAI to its lowest level since June. It means that in three of the past four months, credit availability has tightened.
The benchmark number of 100 was established based on market conditions in March 2012. If the index existed at the height of the boom in 2007, it would have been in the area of 800.
On the positive side, investors increased the number of cash-out refinance products available for well-qualified borrowers, the MBA says.