Dec 10, 2013
Mortgage credit was slightly less available in November than it was in October the Mortgage Bankers Association said today. MBA's new Mortgage Credit Availability Index (MCAI) slipped from 111.5 to 110.2, a -1.2 percent change. Any decrease in the index indicates that credit standards are tightening.
MBA said the index drop was occasioned by discontinuance of a significant number of loan programs that had allowed for loan-to-value ratios exceeding 95 percent and low-to-mid range credit score minimums. There was also a continued investor pull-back from programs offering longer than 30-year terms and interest only loans. Some of these changes were the result of preparations for new regulations coming into effect in January. The above changes were offset a bit by an increase in cash-out refinancing programs offered to well-qualified borrowers by some…
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