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Mortgage lenders tighten standards

August 17,2021 | By Erickson Ocasio

But despite the ongoing economic recovery, credit supply remains low ? Mortgage credit supply increased slightly in July, driven by an uptick in jumbo loan programs. The Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI) was up 0.3% to 119.1 in July, indicating lending standards tightened a little compared to June. The index was benchmarked to 100 in March 2012. “The overall gain was despite another month of pullbacks in high-LTV refinance programs due to GSE policy changes,” said Joel Kan, AVP of economic and industry forecasting at MBA. “The elimination of more high-LTV refinance loans drove most of the 3% drop in the conforming index, but that was somewhat offset by lenders adding new refinance loan programs to help qualified, lower-income GSE borrowers. The bounce back in jumbo credit availability followed a sharp drop in June, as some i

Helping minority-owned banks expand mortgage access

October 29,2020 | By Erickson Ocasio

Promontory MortgagePath announced an initiative today to support minority-owned financial institutions’ efforts to expand access to credit and homeownership in underserved communities. Through the initiative, Promontory MortgagePath will partner with minority-owned depository institutions (MDIs) such as banks and credit unions, including community development financial institutions (CDFIs), to offer exclusive pricing, resources and joint marketing opportunities, the company said in an email to MPA. “The challenges facing community banks in low- to moderate-income areas will not be fixed immediately,” Promontory MortgagePath founder and CEO Gene Ludwig said. “But we must take action now to ensure that these vital institutions are supported, because when these institutions thrive, the positive impact on their communities is profound.” The initiative is meant to accelerate the ability of minority-owned banks to help their comm

Lenders become more selective as homeowners take advantage of low rates – Ellie Mae

October 23,2020 | By Erickson Ocasio

Borrowers’ FICO scores rose to new 2020 highs as interest rates slid to a new historic low in September, according to Ellie Mae. Data from Ellie Mae's latest origination insight report showed that the 30-year note rate for VA loans fell to its lowest level, down to 2.78% from 2.86% month over month. Similarly, the 30-year rate on FHA loans fell from 3.10% to 3.01% in September, while conventional rates remained the highest overall at 3.02%. However, note rates for conventional loans were still down from 3.12% the month before. "We are continuing to see interest rates decrease to new historic lows, hovering right at three percent for the month for all loans," said Joe Tyrrell, president of ICE Mortgage Technology. "As we move into fall and the traditionally hot summer homebuying season normally tapers off, we will watch to see if purchase loan applications trend downward and refinances regain momentum. We

Lending standards still tight as lenders navigate gradual market recovery

July 10,2020 | By Erickson Ocasio

Available mortgage credit decreased again in June as investors continued to hold back from purchasing certain loans amid economic uncertainty caused by COVID-19. MBA's Mortgage Credit Availability Index (MCAI) dwindled by 3.3% to 125 in June, indicating a tightening in lending standards. The baseline of the index was set to 100 in March 2012. Investors' unwillingness to buy jumbo and non-QM loans drove the downturn last month, according to Joel Kan, associate vice president of economic and industry forecasting at MBA. "Mortgage credit supply dropped again in June, as investors further reduced their willingness to purchase jumbo loans and those with lower credit scores. Lenders are navigating a gradual economic and housing market recovery that is still facing headwinds from the ongoing COVID-19 pandemic," he said. "The overall credit availability index decreased 3.3% to its lowest level since April 2014, with all of the su

Mortgage lenders tighten standards

Helping minority-owned banks expand mortgage access

Lenders become more selective as homeowners take advantage of low rates – Ellie Mae

Lending standards still tight as lenders navigate gradual market recovery

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