“There was also a reduction in streamline refinance programs. With the job market softening, and increasing mortgage delinquency rates, some lenders are tightening up their credit offerings,” he said.
Kan also noted that while overall jumbo credit availability decreased slightly compared to May, non-agency loan programs registered a small increase.
The Conventional MCAI decreased by 1.2% in June, and the Government MCAI fell by 1.7%. The Government MCAI tracks mortgage credit availability for loan programs insured or guaranteed by government agencies such as the FHA, VA, and USDA. The Conventional MCAI, which excludes government-backed loans, includes the Jumbo and Conforming MCAIs.
Within the Conventional segment, the Jumbo MCAI, which measures credit availability for loans exceeding conforming loan limits, declined by 0.7%. The Conforming MCAI, which measures programs within conforming loan limits set by government-sponsored enterprises, decreased by 2.2%.
The MCAI and its components—Conventional, Government, Conforming, and Jumbo—are calculated using the same methodology but cover different loan populations. The MCAI was benchmarked to 100 in March 2012, with adjusted base levels for the Conventional and Government indices set at 73.5 and 183.5, respectively, to better represent their position relative to the total index.