The number of mortgage loan products offered increased in April, driven by lenders adding the FHA's 203K home improvement program, VA offerings and jumbo products to their mix, according to the Mortgage Bankers Association's Mortgage Credit Availability Index.
Some investors have tightened underwriting criteria on conventional cash-out offerings, thereby partially offsetting the increase, MBA chief economist Mike Fratantoni said in a statement.
The index increased 0.5% to 122 in April. In March 2012 it was benchmarked to 100.
A decline indicates lending standards are tightening; an increase indicates credit is loosening.
The government MCAI grew 1.1% over the month, compared to the jumbo MCAI which rose 0.8% and the conforming MCAI which increased just 0.2%. The conventional MCAI decreased 0.6% over the month.
In March 2012 the conventional MCAI was benchmarked to 69; the government MCAI to 222.
The MCAI is calculated using borrower eligibility metrics like credit scores, loan types and loan-to-value ratios combined with data from Ellie Mae's AllRegs Market Clarity business information tool.
