MBA: Mortgage Credit Availability Increased In September

Mortgage credit availability increased 1.4% in September compared with August to reach a score of 167.0 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).

Driving the overall increase was a 1.9% increase in credit availability for government-backed loans. Credit for conventional loans increased 0.7%, credit for conforming loans increased 0.7%, and credit for jumbo loans increased 0.6%.

“The increase in credit availability in September was driven by more investors offering streamlined refinance programs to borrowers with U.S. Department of Agriculture [USDA] and Federal Housing Administration [FHA] loans,” said Lynn Fisher, vice president of research and economics for the MBA, in a release. “Streamline programs allow borrowers who have been consistently making their mortgage payments and meet other eligibility requirements to refinance their existing mortgage into a lower interest rate with reduced documentation requirements.”

Fisher added that although USDA/FHA programs accounted for most of the increase, the MBA also observed investors continuing rollout of new Fannie Mae and Freddie Mac low down payment (97% loan-to-value) loan programs and some increased availability of jumbo loans.

The MCAI analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.


Please enter your comment!
Please enter your name here