The Smart Team of NOVA® Home Loans

Disappearing Jumbo Programs Drag on Credit Access

Posted To: MND NewsWire

There was a slight loosening of mortgage credit access in February, as FHA and VA instituted more streamlined documentation requirements for their loans. Access also improved as more investors offered affordable low downpayment mortgages. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) ticked up by 0.4 percent compared to January and now stands at 177.8. A decline in the MCAI indicates a tightening of credit standards, an increase signifies a loosening. The increased offerings and FHA/VA underwriting changes resulted in an increase of 2.3 percent in the Government MCAI and a slight uptick of 0.1 percent in the Conforming MCAI. However, Lynn Fisher MBA’s Vice President of Research and Economics, noted the impacts of those increases on the overall index…(read more)

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Source: Mortgage News Daily

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