Lending standards eased in December for the fourth straight month
Access to mortgage credit increased for the fourth straight month in December, according to the Mortgage Bankers Association.
“Credit availability was up for the fourth consecutive month in December, driven by jumbo loan programs as well as loan programs for borrowers with lower credit scores and low down payments,” said Lynn Fisher, MBA’s vice president for research and economics.
The MBA’s Mortgage Credit Availability Index rose 0.6% to 175.2 last month. A decline in the MCAI indicates tightening credit standards, while an increase indicates that credit is easing. The index was benchmarked to 100 in March of 2012.
Of the MCAI’s four component indices, the Jumbo MCAI saw the greatest jump in credit availability, rising 1.3% month over month. The Conventional MCAI rose 0.7%, the Government MCAI rose 0.6%, and the Conforming MCAI was up 0.4%.
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