Mike Fratantoni on the MBA’s mortgage market outlook

Fratantoni discusses the MBA's November forecast, which includes revised estimates for Q3 and Q4, as well as predictions for next year’s purchase market.

Housing market forecast: It’s about politics, not economics

COVID protections for households and support for financial markets are set to expire at the end of 2020. How will this impact the housing market in 2021?

Buying a home in a competitive market

We couldn’t be more thrilled about interviewing a real estate agent for the second episode of Girlfunds, a show where we give you our two cents on money.

Building the one-touch digital mortgage

As Katherine Campbell drives toward a one-touch mortgage, she’s taking time to share what she has learned along the way.

Mortgage

MBA: Mortgage lending loosens up a bit

Mortgage Credit Availability Index inches up 0.7%

Mortgage credit availability started to expand in October even though underwriting standards remained high against historic standards, the Mortgage Bankers Association concluded in its Mortgage Credit Availability Index. 

The index inched up 0.7% to a score of 111.5 in October after two consecutive months of declines in August and September, suggesting a loosening of mortgage credit.

"We have seen a steady loosening in an incremental way since the beginning of the year," said Jonathan Corr, Ellie Mae's president and chief operating officer.

The average FICO score on new loans fell from 750 at the beginning of the year to around 732 in September, Corr explained. 

This slight fluctuation stems from investors reducing the minimum credit score requirements on certain products.  

Other investors reduced the availability of cash-out refinances and limited other programs to primary residences in programs, equating to a slight increase for the month.

Additionally, Corr said, "We have seen a significant rise in the percentage of loans with a credit score under 700."

In September, 32% of all loans closed had credit scores less than 700, compared to less than 17% a year ago.

"All of these are indicators that credit is loosening somewhat. Not drastically but we are going in the right direction," Corr added. 

Most Popular Articles

Fannie Mae, Freddie Mac conforming loan limits increase for 2021

The Federal Housing Finance Agency announced new conforming loan limits for Fannie Mae and Freddie Mac for 2021. The increase is up 7.5% from 2020’s limit of $510,400 and marks the fifth consecutive year of increases.

Nov 24, 2020 By

Latest Articles

CoreLogic responds to investor groups’ initiation of written consent process

The battle for CoreLogic’s board continued on Tuesday after Senator Investment Group and Cannae Holdings, who attempted an unsolicited takeover bid of the company this summer, initiated a written consent process to remove and replace additional directors.

Nov 24, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please