Skip to main content

MBA: Mortgage Credit Availability Slides In April

Navi Persaud
May 08, 2020
Vice grip tightening money. Credit: iStock.com/77DZIGN

The Mortgage Bankers Association's latest Mortgage Credit Availability Index (MCAI) reported a 12.2% decrease in April 2020, with declining mortgage credit availability directly correlated to the recent tightening of lending standards. The conventional MCAI decreased 15.2% with the government MCAI falling by 9.5%. The Jumbo MCAI fell 22.6% and conforming MCAI followed with a 7.1% decrease.
 
"The abrupt weakening of the economy and job market—and the uncertainty in the outlook—drove credit availability down in April for the second consecutive month," said Joel Kan, MBA's associate vice president of economic and industry forecasting. "The overall index fell to its lowest level since December 2014, and the sub-indexes pointed to tightened credit supply for all loan types. The decline was largely driven by lenders dropping many low credit score and high-LTV programs, as well as further reduction in jumbo and non-QM products. There was also a large decline in loan offerings pertaining to cash-out refinances, given the GSEs' constraints in purchasing cash-outs that have fallen into forbearance."
The Mortgage Bankers Association's latest Mortgage Credit Availability Index (MCAI) reported a 12.2% decrease in April 2020
 



 

Biden Appoints Sandra Thompson As Acting Director Of The FHFA

The White House appointed Sandra L. Thompson as acting director of the Federal Housing Finance Agency (FHFA), effective immediately. Her statement reveals that a permanent director will be confirmed in December.

Regulation and Compliance
Jun 24, 2021
Supreme Court Gives Biden Full Control Over FHFA

The U.S. Supreme Court gave President Joe Biden the authority to remove the head of the Federal Housing Finance Agency (FHFA) while dismissing claims from shareholders of Fannie Mae and Freddie Mac.

Industry News
Jun 23, 2021
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021