TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1478106
48 | M REPORT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Credit Availability at Lowest Level Since 2013 "Credit availability fell last month to the lowest level since May 2013, as lenders streamlined their loan offerings in this declining volume environment," said Joel Kan, MBA's Associate VP of Economic and Industry Forecasting. T he amount of credit that mortgage applicants have, as measured by the Mortgage Bankers Association (MBA) in the Mortgage Credit Availability Index (MCAI) decreased by month's end by 9% to an index value of 108.8. When the MCAI declines, it is indicative that lenders are tightening their standards making it harder for consumers to get a mortgage. When the MCAI goes up, it is indicative of loosening credit standards. Looking back the index was benchmarked in March 2012 to a value of 100. For conventional loans, the MCAI decreased 9.8%, government loans dropped by 8.4%. Of the com- ponent indices of the Conventional MCAI, the Jumbo MCAI decreased by 13.4% and the Conforming MCAI fell by 3.3%. "Credit availability fell last month to the lowest level since May 2013, as lenders streamlined their loan offerings in this declining volume environment," said Joel Kan, MBA's Associate VP of Economic and Industry Forecasting. "The 9% decline in the July index was the largest monthly decrease since April 2020. Lenders have responded ac- cordingly to the decrease in demand for refinance and purchase loans by reducing loan offerings, including for ARMs, cash-out refinances, and investment properties." Added Kan, "The overall general tightening in credit availability also affected jumbo loans and non-QM loan programs." Anywhere. Anytime. MReport Digital Bringing Today's Lending Headlines into Focus, MReport Digital Puts Mortgage Banking News at Your Fingertips Experts you trust. People you know. News you want. MReport is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MReport Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Subscribe to MReport and MReport Digital now! Call 800.856.8060 or connect with us online at themreport.com to take advantage of our special introductory offer! digital.themreport.com powered by THEFIVESTARINSTITUTE Anywhere. Anytime. MReport Digital Bringing Today's Lending Headlines into Focus, MReport Digital Puts Mortgage Banking News at Your Fingertips Experts you trust. People you know. News you want. MReport is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MReport Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Subscribe to MReport and MReport Digital now! Call 800.856.8060 or connect with us online at themreport.com to take advantage of our special introductory offer! digital.themreport.com powered by THEFIVESTARINSTITUTE Anywhere. Anytime. MReport Digital Bringing Today's Lending Headlines into Focus, MReport Digital Puts Mortgage Banking News at Your Fingertips Experts you trust. People you know. News you want. MReport is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MReport Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Subscribe to MReport and MReport Digital now! Call 800.856.8060 or connect with us online at themreport.com to take advantage of our special introductory offer! digital.themreport.com powered by THEFIVESTARINSTITUTE