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Forbearance and Late Payments are Making Mortgages Harder to Get

Posted To: MND NewsWire

Mortgage credit tightened again in September, reaching a second successive six-year low. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) dropped another 1.9 percent to 118.6. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The new number is down 63.3 points from the level it reached in January before interest rates started an unprecedented decline and servicers were instructed to grant forbearances to existing borrowers. Three of the four components of the MCAI declined compared to August. The Conventional MCAI decreased 6.1 percent and its two components, the Jumbo MCAI and the Conforming index fell by 2.1 percent and 9.5 percent, respectively. The Government MCAI…(read more)

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