The Mortgage Bankers Association reported that credit availability increased in May.
“The MCAI increased 1.14 percent from 113.8 in April to 115.1 in May. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit,” the report says.
Read the MBA press release: Mortgage Credit Availability Increases in May.
Mortgage credit loosened somewhat in May, partially as a result of a slight increase in the availability of jumbo loans. Another component was the action by some investors to lower credit score requirements on FHA loans.