Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

How servicers continue to protect neighborhoods amid COVID

We spoke with MCS CEO Caroline Reaves about self-service technology, the shift to virtual and how servicers can prepare for post-COVID success by improving processes today.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

Mortgage

Mortgage credit availability loosens in October

Driven by increase in jumbo loans

Mortgage credit availability increased, easing credit standards slightly in October, according to the Mortgage Bankers Association’s Mortgage Credit Availability Index, which analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.

The MCAI increased 2.6% in October to 171.3, up from 167 in September.

Click to Enlarge

MCAI

(Source: MBA)

To put this information into perspective, a decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. Although the MBA was not measuring credit availability during the housing boom years of 2004 to 2007, a simulation model created by the MBA shows that the MCAI would have fallen between 750 and 850 during that time. 

“Credit availability loosened in October driven by several different factors," said Lynn Fisher, MBA vice president of research and economics. “The index was pushed up by an increase in the number of investors as well as an uptick in the availability of jumbo and high balance loan programs.”

“We are also seeing greater availability of conventional conforming loan programs that are designed to provide home ownership to a greater number of consumers,” Fisher said.

The Jumbo MCAI increased the most over the month with its growth of 5.8%. The Conventional MCAI also increased by 4%, followed by the Conforming MCAI’s increase of 2.2% and the Government MCAI’s increase of 1.6%.

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

Senate Finance Committee unanimously approves Yellen

In a unanimous 26-0 vote, the Senate Finance Committee approved Janet Yellen’s nomination to the U.S. Treasury Secretary on Friday. Senate Majority Leader Chuck Schumer said there would be no other votes in the Senate on Friday, meaning there will not be confirmation of Yellen as Treasury Secretary until this weekend or next week, if she is approved.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please