Lending standards tightened in November
Loan programs restrict LTV, FICO requirements
Mortgage credit availability slightly dipped in November as lending standards tightened a bit, the Mortgage Bankers Association said in its updated Mortgage Credit Availability Index report.
The MCAI edged down 1.2% from an index score of 111.5 in October to 110.2 in November.
The index was benchmarked at 100 in March 2012, and if it was tracked in 2007, it would have been hitting roughly around 800.
"A significant number of loan programs allowing for more than 95 LTV and low-to-mid range minimum FICOs were either discontinued in November, or transitioned into programs with lower LTV maximums and/or higher minimum credit scores," the report noted.
In addition, investors continued to pull-back from programs with greater than 30-year terms and interest-only programs to prepare for new regulations coming into effect in January.