Mortgage Credit Standards Loosen a Little in May

Washington, DC, June 8, 2015 — Mortgage credit availability increased in May, according to the Mortgage Credit Availability Index.

The index is a report by the Mortgage Bankers Association.

The MCAI increased 0.5 percent to 122.6 in May.  A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit.

The index was benchmarked to 100 in March 2012.

“Credit availability eased somewhat in May, largely as a result of increased availability of cash out refinance loans and greater availability of FHA 203K home improvement loans,” said Mike Fratantoni, MBA’s chief economist.