Mortgage credit availability fell to just short of its 2012 benchmark level in February. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) dropped 3.0 percent from its January level to a reading of 100.1. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. “ Mortgage credit availability decreased to its lowest level since January 2013 with all loan types seeing declines in availability over the month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The conforming subindex decreased 4.3 percent to its lowest level in the survey, which goes back to 2011. This decline was driven by the ongoing trend of shrinking industry capacity as mortgage rates stayed significantly higher than a year ago. Additionally, in this volatile rate environment and potentially weakening economy, there was also a reduction in refinance programs offered for low credit score and high-LTV borrowers.” The MCAI has four component indices. The Conventional MCAI decreased 4.4 percent, while the Government MCAI was down 1.6 percent. The two component indices of the Conventional MCAI fell sharply, the decline in the Conforming MCAI noted by Kan and a 4.4 percent drop in the Jumbo index. The MCAI and its components are calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.). These metrics and underwriting criteria for over 95 lenders/investors are combined by MBA using data made available via a proprietary product from ICE Mortgage Technology. The resulting calculations are summary measures which indicate the availability of mortgage credit at a point in time. All indices were benchmarked on March 31, 2012.
Related Articles
Mortgage News: Borrowers Opt For 35-Year Deals To Bring Down Monthly Payments
June 5, 2023
Mark Paul Cervantes
International, Mortage News, Top News
Comments Off on Mortgage News: Borrowers Opt For 35-Year Deals To Bring Down Monthly Payments
Longer Term Means Higher Overall Interest Cost One in five first-time buyers – a record number – are signing-up to 35-year mortgages to make their monthly repayments affordable, according to industry data, writes Jo Thornhill. The […]
Borrowers shift toward jumbo loans, ARMs as mortgage rates rise
March 13, 2023
Mark Paul Cervantes
Housing Wire
Comments Off on Borrowers shift toward jumbo loans, ARMs as mortgage rates rise
Rate and affordability pressures continue to challenge purchase lending, driving homebuyers to alternative loan products. The number of rate locks was down in February from the previous month, but dollar volume rose due to a […]
U.S. Bank reveals new mortgage product aimed at minority borrowers
July 13, 2023
Mark Paul Cervantes
Financial Markets, Mortage News, Top News
Comments Off on U.S. Bank reveals new mortgage product aimed at minority borrowers
U.S. Bank has joined the growing list of mortgage providers to deploy homebuyer assistance programs to help underserved borrowers overcome the down payment obstacle. The bank has launched Access Home Loan, a mortgage Special Purpose […]