Credit availability slipped as government backed lending tightened
Lending standards for conventional mortgage loans eased in September but were offset by tighter standards in government-backed loans.
That meant an overall tightening of lending according to the Mortgage Bankers Association’s Mortgage Credit Availability Index.
The index was down 0.8% to 182.1 in September with the conventional index up 1.2% (jumbo up 2.7%, conforming down 0.7%) while the government index fell 2.5%.
"The decline in government credit was driven by fewer streamline offerings as well as a decline in loan programs with lower credit requirements,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “The government index is at its lowest level since July 2015. The jumbo subindex increased for the fifth time in six months and reached its highest level since we started tracking jumbo credit."
The index, benchmarked to 100 in March 2012, analyzes data from Ellie Mae's AllRegs® Market Clarity® business information tool.
