Access to credit isn’t fixed. Depending on current lending standards and loan programs, it can be easier to get a loan at some times than it is at others. That’s why the Mortgage Bankers Association keeps a monthly measure of mortgage credit availability. Any decrease to its Mortgage Credit Availability Index indicates lending standards have tightened and it has become more difficult for borrowers to obtain a loan. If the index increases, it means credit has become more available. In November, the index fell 3.3 percent from the month before. Joel Kan, MBA’s vice president and deputy chief economist, says there were several factors that contributed to the decline. “Part of the decline was attributable to investors pulling back on high LTV and low credit score programs for both fixed and ARM loans, as well as further exits from the broker channel in an originations market that is still challenging for many lenders,” Kan said. (source)
