General World News

Lending standards tighten as appetite for riskier loans drops

Lending standards tightened in August amid a worsening economic outlook and signs of cooling in home-price growth.

The mortgage credit availability index (MCAI) fell marginally by 0.5% to 108.3 in August from the previous month, according to the Mortgage Bankers Association (MBA). A decline in MCAI, benchmarked to 100 in March 2012, indicates that lending standards are tightening while an increase in the index suggests a loosening of credit.

“Mortgage credit availability declined slightly in August, as investors reduced their offerings of ARM and non-QM loan programs,” said Joel Kan, MBA’s associate vice president details ⇒

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