Mortgage lenders tighten standards | Mortgage Professional America

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The supply of mortgages increased slightly in July due to an increase in the number of large loan programs.

The Mortgage Banks Association’s Mortgage Affordability Index (MCAI) rose 0.3% in July to 119.1, indicating a slight tightening of lending standards compared to June. In March 2012, the index was estimated to be 100.

“The overall gain came despite another month of rollbacks for high LTV refinancing programs due to changes in GSE policy,” said Joel Kahn, MBA Economic and Industry Forecast Officer. “The abandonment of higher refinancing loans with high LTV resulted in most of the 3% drop in the compliance index, but this was somewhat offset by lenders adding new refinancing lending programs to help qualified low-income GSE borrowers. The rebound in the availability of giant loans followed a sharp drop in June when some investors renewed interest in giant ARM loans to pay off refinancing cash and build investment houses. ”

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