New GSE Loans only Minor Factor in Rising Credit Access

Accessibility to mortgage credit rose in December.  The Mortgage Bankers Association said today
that its Mortgage Credit Availability Index (MCAI) went from the November level
of 114.6 to 115.7, a 1 percent gain.  An
increase in the index, which was indexed to 100 in March 2012, indicates a
loosening of credit.

Although MBA said the conventional component of the MCAI
increased by 2.2 percent in December, indicating great availability of
government sponsored enterprise (GSE) loans, while the Government MCAI was up
only 1 percent.  This may not reflect to
any degree the new 97 percent loans announced last month by Fannie Mae and
Freddie Mac.  Fannie Mae’s new loan,
available to well qualified first-time homebuyers, went into effect immediately
but Freddie Mac’s version will not be available until March.


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