The Mortgage Bankers Association (MBA) announced that mortgage credit availability increased by almost 1 percent in November, based on information provided by Ellie Mae for the association’s monthly Mortgage Credit Availability Index (MCAI).
The MCAI jumped to 182.4 during the month, an uptick of 0.8 percent, according to an MBA press release. The jumbo MCAI experienced the most growth in credit availability, rising 3.8 percent, followed by the conventional MCAI (2.8 percent) and the conforming MCAI (1.8 percent). The government MCAI saw a 0.7 percent decline from the previous month. The government index accounts for programs backed by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the United States Department of Agriculture (USDA).
“Mortgage credit availability increased in November driven by a net increase in investor offerings,” MBA Vice President of Research and Economics Lynn Fisher said in the release. “While the number of offerings for government backed programs – FHA/VA/USDA — declined modestly, conventional offerings increased more strongly over the month among both jumbo and conforming programs.”
The MCAI analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool, which includes metrics and underwriting criteria for more than 95 lenders and investors. An increase in the index indicates that credit availability is loosening, while a decrease signals that lending standards are tightening. The index was benchmarked to 100 in March 2012.
The Total MCAI has an expanded historical series, which gives perspective on credit availability going back 10 years, not including conventional, government, conforming or jumbo MCAIs.
“The expanded historical series covers 2004 through 2010, and was created to provide historical context to the current series by showing how credit availability has changed over the past 10 years — this includes the housing crisis and ensuing recession,” the release states. “Data prior to March 31, 2011, was generated using less frequent and less complete data measured at six-month intervals and interpolated in the months between for charting purposes. Methodology on the expanded historical series from 2004 to 2010 has not been updated.”