Mortgage Credit Availability Rises Slightly in December

Mortgage credit availability increased slightly in December according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from the AllRegs Market Clarity product. The MCAI increased 0.6 percent from 110.2 in November to 110.9 in December. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. The index was benchmarked to 100 in March 2012. If it had been tracked in 2007, it would have been at a level of roughly 800, indicating the credit was much more available at that time. Credit availability was little changed over the past month. Investors continue to fine-tune credit score and LTV eligibility matrices. Many investors appear to have already made changes in prior months with respect to the new CFPB mortgage regulations.