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Lenders Continue to Shed Higher Risk Programs
Thursday, February 6, 2020
The availability of mortgage credit declined slightly
last month. The Mortgage Bankers Association said its Mortgage Credit
Availability Index (MCAI) dipped 0.2 percent to 181.9 in January. A decline in
the MCAI indicates that lending standards are tightening, while increases in
the index are indicative of loosening credit.
The MCAI has four components, the Conventional MCAI and
its two sub-components were responsible for the January decline. The
Conventional MCAI decreased 0.5 percent as its Jumbo components fell 0.3
percent and the Conforming MCAI moved 0.9 percent lower. These losses were
partially compensated for by the Government MCAI which gained 0.4 percent.
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