Tag Archives: Credit Availability

Speaking at an investor conference in New York, BofA chief Brian Moynihan said his firm—frequently listed among the top five mortgage lenders in the nation—has little incentive "to try to create more mortgage availability where the customers are susceptible to default."

Access to mortgage credit tightened in October, according to a report from the Mortgage Bankers Association (MBA). The group's Mortgage Credit Availability Index (MCAI), a gauge of credit access based on borrower traits and underwriting trends, fell 2.5 percent last month to a reading of 113.2.

The National Association of Realtors' (NAR) Pending Home Sales Index, a forward-looking gauge of home sales based on contract signings, ticked up 0.3 percent to 105 from August's 104.7, the group reported. Compared to a year ago, the index climbed 1 percent—the first yearly increase in 11 months.

The Conference Board's Leading Economic Index, a measure of economic developments as an indicator of future trends, increased 0.8 percent last month to 104.4 following a downwardly revised August reading that showed no change. Nine of the index's ten components contributed to the latest increase.

HUD Secretary Julian Castro unveiled in a speech the points of the agency's "Blueprint for Access" meant to ease the risk of lending while expanding credit. "It's in our entire nation's interest to help more responsible Americans succeed in the housing market by expanding access to credit," Castro said.

Many mortgage professionals believe the outlook for their business in the next six months is "grim," according to a report from the Collingwood Group. Only 30 percent of mortgage industry professionals surveyed for the report believe that business conditions will be better in the next six months, while 41 percent said conditions will stay the same and 29 percent said they believe conditions will be worse.

The Mortgage Bankers Association's (MBA) Mortgage Credit Availability Index was flat at 116.1 for the month, the group reported Thursday. The gauge is calculated based on borrower eligibility metrics nationwide and underwriting criteria for more than 85 lenders and investors. At its current level, the index points to a slightly looser credit market now compared to when it was benchmarked in March 2012.

MBA's Mortgage Credit Availability Index (MCAI), a gauge of credit access based on borrower profiles and underwriting criteria at lenders nationwide, slipped to 116.1 last month from 116.4 in July, the group reported. A decline indicates tighter standards overall in the market. Both the conventional lending and government-focused indices edged down as well, each declining less than a percentage point from July.

The National Association of Realtors (NAR) reported on Thursday that sales of existing homes (including single-family houses, townhomes, condominiums, and co-ops) hit a seasonally adjusted annual pace of 5.15 million last month, up 2.4 percent from a downwardly revised June. Looking only at single-family homes, July sales improved 2.7 percent month-over-month to a seasonally adjusted pace of 4.45 million but still fell 4.2 percent short of last year.

Over the next 12 months, Americans expect median home prices to rise 3.87 percent, according to the latest data from the Federal Reserve Bank of New York. That figure is down slightly from the New York Fed's June survey, marking the second consecutive month of declining price change expectations. The decline is in line with Fannie Mae's most recent National Housing Survey, which showed a decline in expected price growth to 2.3 percent.