Press Release


Title: Mortgage Lending Standards Loosen Slightly in June, according to MBA/AllRegs® Mortgage Credit Availability Index
Source:   MBA
Date: 7/9/2013

WASHINGTON, D.C. (July 9, 2013) — Mortgage lending standards loosened slightly in June, indicating that mortgage credit is more available, according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from AllRegs® Market Clarity® product. The MCAI increased to 109.8 last month which is almost one percent higher than the index reading from May. Lower MCAI values indicate lending standards are tightening, while higher index values and increases to the index are indicative of a loosening of credit.
 
Mortgage credit availability, which increased in June relative to May 2013, trended relatively lower throughout 2012 and is at levels close to those seen in 2011, when MBA first started calculating the index. The index increased to 109.8 in June from 108.9 in May 2013, and both are up from the benchmark level of 100 in March 2012. If the index had been tracked in 2007, it would have been roughly 800.
 
 
Source: Mortgage Bankers Association; Powered by AllRegs® Market Clarity®
 
The increase to the MCAI was primarily driven by a small uptick in the number of products which offer a cash-out feature. There were also small increases in the number of jumbo, investor, and higher LTV offerings.
 
ABOUT THE NEW MORTGAGE CREDIT AVAILABILITY INDEX
The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit.
 
The MCAI is calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.). These metrics and underwriting criteria for over 85 lenders/investors are combined by MBA using data made available via the AllRegs® Market Clarity® product and a proprietary formula derived by MBA to calculate the MCAI, a summary measure which indicates the availability of mortgage credit at a point in time. Base period and value for all indexes is March 31, 2012=100.
 
To learn more about the AllRegs Market Clarity platform visit http://answers.allregs.com/MCAI-Market-Clarity.
 
For more information on the Mortgage Credit Availability Index, including Methodology, Frequently Asked Questions and other helpful resources, please visit this website or contact MBAResearch@mortgagebankers.org.
 
 
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ABOUT MORTGAGE BANKERS ASSOCIATION:
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mortgagebankers.org.
 
MBA Press and Media (Index/Methodology/Economic Insight):
For more information contact: Matt Robinson, MBA (202) 557-2727 or MRobinson@mortgagebankers.org
 
 
ABOUT ALLREGS:
First introduced in 1989, AllRegs® is used by virtually all of the top 100 lenders as well as throughout numerous governmental agencies, including Fannie Mae, Freddie Mac, the FHLBs, FHA, VA, RHS, Ginnie Mae, and more. AllRegs is the exclusive electronic publisher of the Fannie Mae and Freddie Mac Single and Multi-Family Seller/Servicer Guides and The Federal Home Loan Banks’ MPF Program Guidelines. Products include single and multifamily underwriting & insuring guidelines as well as federal compliance laws and regulations, state compliance laws and regulations with plain-language analyses, contract publishing services, policy manuals and a library of historical guidelines. The educational division, AllRegs Academy, offers virtual and live training, as well as designation and practical guides. The Professional Services Group develops custom guides, policy manuals and other documents on a contract basis. For more information, call (800) 848-4904 or go to www.allregs.com.
 
AllRegs Press and Media:
For more information contact: Krista Sabol, AllRegs (651) 289-4809 or ksabol@allregs.com
 
AllRegs Sales Inquiries:
For more information, contact your Regional Account Executive (800) 848-4904 or sales@allregs.com

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:   www.mba.org.