Credit Index Tightens as One Investor Shutters Division

Posted To: MND NewsWire

The Mortgage Bankers Association's (MBA's) Mortgage Credit Availability Index (MCAI) ticked down in August, indicating a slight and largely operational tightening of mortgage credit. The index lost 0.4 percent to a reading of 164.7. Lynn Fisher, MBA's Vice President of Research and Economics explained, "Credit availability decreased slightly over the month, driven by one mid-sized investor closing their correspondent operations . Despite the loss of all of the programs associated with this investor, the Jumbo MCAI increased by 0.5 percent, indicating that credit conditions continue to ease among jumbo loan programs." Of the four components of the MCAI the Conforming MCAI had the largest decrease, falling 0.9 percent, followed by the Government MCAI which lost 0.5 percent. The Conventional MCAI...(read more)

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