Mortgage Guidelines Could be Twice as Loose and it Still Wouldn’t be 2007 Again

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Posted To: MND NewsWire

The Mortgage Bankers Association’s Mortgage Credit Access Index, released earlier this week, showed continued slight easing in the credit markets, especially in the jumbo loan space. A second similar index from the Housing Finance Policy Center, has credit tightening slightly. The Centers Credit Availability Index (HCAI) moved off the recent peak of 5.4, set in the first quarter of this year, to 5.1 in the second quarter. The Center says the decline was due primarily to a shift in market composition , from the government channel to the portfolio channel where lending standards are tighter. The HCAI measures the share of purchase mortgages that are likely to default, that is, become 90 or more days past due, and lenders’ willingness to tolerate it. A lower index indicates a lower tolerance reflected…(read more)

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