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97 Percent GSE Loans Boost Credit Availability

New initiatives aimed at increasing access to credit and making it more
affordable began to pay off in January according to Mike Fratantoni, the
Mortgage Bankers Association’s (MBA’s) Chief Economist.  MBA’s Mortgage
Credit Availability Index (MCAI) increased 1.8 percent in January, to
117.8.  An increase in the index, which
analyzes data from the AllRegs Market Clarity Product®, indicates that lending
standards have loosened from those the previous month.

Fratantoni said, “Fannie Mae and Freddie Mac
announced new 97 percent LTV loan programs in December aimed at expanding
access to conventional financing for new and well-qualified homebuyer. Additionally,
FHA announced reductions in mortgage insurance premiums (MIP).   Both
of these announcements were designed to provide consumers with better access to
mortgage credit.”

 

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