Consumers seeking housing finance loans had a marginally easiertime finding one in October than they have in recent months,according to the MortgageBankers Association.

The association maintains a Mortgage Credit Availability Index which it reported had movedto 111.5 in October, up from 110.7 in September. For context, the association reported that the index hit a housing-bubble levelof about 800 in 2007, indicating far greater mortgage availabilitythen.

The MBA reported the MCAI decreased 0.7% to 110.7 in Septemberfollowing a similar decline in August, explaining that a decline inthe MCAI indicates that lending standards are tightening, whileincreases in the index are indicative of a loosening of credit.

The association attributed the decrease in the MCAI in Septemberwas driven by decreases in availability of loans that have a termgreater than 30 years. Shifting borrower eligibility requirementson jumbo loan programs led to offsetting increases and decreases tothe MCAI.

“Credit availability tightened last month as more lendersremoved program offerings with loan terms greater than 30 yearsand/or interest-only features, similar to the trend we observedlast month,” said Mike Fratantoni, the MBA's vice president ofresearch and economics.

“Just as before, we believe this reflects lenders implementationof the Ability to Repay/Qualified Mortgage regulation which comesfully into effect in January. Offsetting this tightening has beensome increased willingness to offer higher LTV loans, particularlyto jumbo borrowers,” Fratantoni said.