Real Estate
Home›Real Estate›Mortgages›Mortgage credit availability falls in August as jumbo…
Mortgage credit availability falls in August as jumbo programs shrink
The Mortgage Bankers Association said lenders reduced loan programs that use flexible documentation and cash-out refinance offerings, contributing to the 1% monthly drop.
HousingWire reports that the Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI) fell 1% in August to 107.3, a sign of tighter mortgage lending standards.
The conventional MCAI dropped 1.8%, while jumbo mortgage credit availability decreased 2.5%. Government loan availability, which includes FHA, VA, and USDA programs, was unchanged.
Within the conventional category, the jumbo index declined while the conforming index stayed in a narrow range. HousingWire also reports that MBA attributed the decrease to lenders pulling back on some loan programs that require more flexible documentation and on cash-out refinance loans.
MBA said many of the programs reduced in August had jumbo features, helping drive the larger decline in jumbo availability. The report notes the MCAI decline comes as mortgage rates remain elevated and that the index is based on data from ICE Mortgage Technology and more than 95 lenders and investors.