April 28th, 2014 9:33 AM by Jackie A. Graves
Lower Index=Less Credit Available
credit availability increased slightly in March, according to the Mortgage
Credit Availability Index (MCAI), a report from the Mortgage Bankers
Association (MBA), which analyzes data from the AllRegs® Market Clarity®
with past months, many lenders and investors are providing borrowers seeking
higher loan amounts with a broader range of financing options by introducing
new jumbo loan programs. Over the month, some lenders made a complete exit from
wholesale lending operations, while other lenders moved to enter that space or
expanded operations," said Mike Fratantoni, MBA's Chief Economist.
The trend of increased availability for jumbo loan
programs is consistent with behavior MBA has been monitoring in its Weekly
Applications Survey, which shows growth in purchase volume for applications
with higher loan amounts and contraction in home purchase application volume
for lower-balance loans. Similar trends have been noted in the National
Association of Realtors' existing home sales data as well. Lenders are likely
moving to create a broader range of jumbo products in order to capture the
increasing demand for such financing in the market.
The MCAI increased 0.44 percent from 113.5 in February to 114.0 in March. A
decline in the MCAI indicates that lending standards are tightening, while
increases in the index are indicative of a loosening of credit. The index was
benchmarked to 100 in March 2012. If the MCAI had been tracked in 2007, it
would have been at a level of roughly 800, indicating the credit was much more
available at that time.
MBA has partnered with AllRegs®
to produce monthly MCAI, which feeds current mortgage underwriting parameters
into a single index number to capture whether overall mortgage credit is more
or less available from month to month.
The MCAI provides the only standardized
quantitative index that is solely focused on mortgage credit.
about the MCAI? Contact firstname.lastname@example.org.
Questions about AllRegs MarketClarity? Contact email@example.com.