Mortgage Standards Ease Slightly in June

Credit availability appeared to have improved slightly in June as three of the four components in the Mortgage Bankers Association's (MBA's) Mortgage Credit Availability Index (MCAI) gained ground. The composite index inched up 0.1 percent from May to 178.5. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.

Lynn Fisher, MBA's Vice President of Research and Economics said, "Mortgage credit availability increased slightly by 0.1 percent in June, lifted by expansion among jumbo loan programs and additional availability of affordable conforming loan programs."

The Conforming and Conventional components of the MCAI each increased by 0.9 percent in June and the Jumbo MCAI rose 0.8 percent.  These gains were offset slightly by the Government index which declined 0.4 percent.

The MCAI, which analyzes data from Ellie Mae's mortgage origination system, was benchmarked to 100 in March 2012 as were the Conforming and Jumbo indices.  The Conventional and Government indices have adjusted base levels, calibrated to better represent where those indexes might have fallen in March 2012 relative to the 100 benchmark.