MBA: August Mortgage Credit Up Again
Mortgage credit availability increased slightly in August, the Mortgage Bankers Association reported this morning.
The Mortgage Credit Availability Index (MCAI), which analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool, increased by 0.7 percent to 180.2 in August. Of the four component indices, the Conforming MCAI saw the greatest increase in availability over the month (up 1.6 percent), followed by the Conventional MCAI (up 1.5 percent), the Jumbo MCAI (up 1.4 percent) and the Government MCAI (up 0.1 percent).
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 increased slightly in August, driven by the expansion of credit among conforming and agency jumbo programs,” said MBA Vice President of Research and Economics Lynn Fisher. “Following the same pattern as last month, agency eligible adjustable-rate mortgage loan programs continued to be updated in August to allow for higher loan to value ratios, effectively increasing the availability of credit.”
Expanded Historical Series
The Total MCAI has an expanded historical series, which gives perspective on credit availability going back 10 years (expanded historical series does not include Conventional, Government, Conforming or Jumbo MCAI). The expanded historical series covers 2004 through 2010, and was created to provide historical context to the current series by showing how credit availability has changed over the past 10 years–this includes the housing crisis and ensuing recession. Data prior to March 31, 2011, was generated using less frequent and less complete data measured at six-month intervals and interpolated in the months between for charting purposes. Methodology on the expanded historical series from 2004 to 2010 has not been updated.
About the Mortgage Credit Availability Index
The MCAI provides the only standardized quantitative index solely focused on mortgage credit.
The MCAI is calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.). These metrics and underwriting criteria for more than 95 lenders/investors are combined by MBA using data made available via the AllRegs Market Clarity product and a proprietary formula derived by MBA to calculate the MCAI, a summary measure which indicates the availability of mortgage credit at a point in time. Base period and values for total index is March 31, 2012=100; Conventional March 31, 2012=73.5; Government March 31, 2012=183.5.
To learn more about the Ellie Mae AllRegs Market Clarity platform visit http://answers.allregs.com/MCAI-Market-Clarity. For more information on the Mortgage Credit Availability Index, including Methodology, Frequently Asked Questions and other helpful resources, visit www.mba.org/MortgageCredit or contact MBAResearch@mba.org.
