The Mortgage Bankers Association (MBA) said on
Thursday that overall access to mortgage credit tightened very slightly in
August. The Association's Mortgage
Credit Availability Index (MCAI) decreased 0.3 percentage points from 116.4 in
July to 116.1 last month.
Michael Fratantoni, MBA's Chief Economists said that
while overall access to credit tightened from July to August, "We did see some loosening in certain segments of the purchase
market. In particular, lenders
instituted additional offerings of loan programs like the FHA 203(k) home
improvement program and one-time-close programs for financing new
The FHA 203(k) loan allows borrowers to
include renovation expenses in their loan amount. One-time-close loans
streamline the purchase and financing of new construction.
The MCAI analyzes data from the AllRegs®
Market Clarity® product. It is
benchmarked to 100 in March 2012 and a decline in its number indicates that
lending standards are tightening while a higher number shows a loosening of
credit. An increase in private lender jumbo
loan programs had sent the index higher in July.