February Mortgage Credit Availability Rises to 9-Month High
MBA NewsLink Staff
Mortgage credit availability increased in February to its highest level in nine months, the Mortgage Bankers Association reported Thursday.
The MBA Mortgage Credit Availability Index rose by 1.0 percent to 126.0 in February. The Conventional MCAI increased by 3.2 percent, while the Government MCAI decreased by 0.9 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 3.9 percent and the Conforming MCAI rose by 2.2 percent.
“Credit availability increased to its highest level since May 2021, driven by growth in jumbo loan programs, as well as those that include allowances for ARMs and expanded credit score and LTV requirements,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “In a period of rising mortgage rates, affordability challenges and declining volume, lenders have made efforts to slightly broaden their product offerings.”
The report analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool. 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.
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 ICE Mortgage Technology 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.