The Mortgage Credit Availability Index (MCAI), a survey from the Mortgage Bankers Association (MBA) that examines data from ICE Mortgage Technology, indicates that the availability of mortgage credit improved in February.
In February, the MCAI increased by 1.1% to 107.1. Lending rules are tightening when the MCAI declines, and loosening credit is indicated when the index rises. In March 2012, the index was benchmarked at 100. While the Government MCAI dropped by 0.8%, the Conventional MCAI rose by 2.7%. The Conforming MCAI increased by 2%, while the Jumbo MCAI increased by 2.9% among the Conventional MCAI’s component indices.
“Lenders increased mortgage credit supply last month, particularly for refinancing, as mortgage rates moved lower in January and February. Most of last month’s supply growth was in loan programs that allowed for cash-out refinance and on investor homes, although these were still limited to lower LTV borrowers,” said Joel Kan, MBA’s VP and Deputy Chief Economist. “The jumbo index increased by 3% for the second straight month, again driven by growth in non-QM loan programs. The government index was the only component that saw a decline in credit supply over the month, as lenders likely tightened underwriting standards given the recent increase in FHA mortgage delinquency rates.”
iMortgage Indices — Government, Conforming & Jumbo MCAI
- In February, the MCAI increased by 1.1 % to 107.1.
- The Government MCAI dropped by 0.8%.
- The Conventional MCAI rose by 2.7%.
- The Conforming MCAI increased by 2.0%.
- The Jumbo MCAI increased by 2.9% among the Conventional MCAI’s component indices.
Note: The Conventional, Government, Conforming, and Jumbo MCAIs are constructed using the same methodology as the Total MCAI and are designed to show relative credit risk/availability for their respective index. The primary difference between the total MCAI and the Component Indices are the population of loan programs which they examine. The Government MCAI examines FHA/VA/USDA loan programs, while the Conventional MCAI examines non-government loan programs. The Jumbo and Conforming MCAIs are a subset of the conventional MCAI and do not include FHA, VA, or USDA loan offerings. The Jumbo MCAI examines conventional programs outside conforming loan limits, while the Conforming MCAI examines conventional loan programs that fall under conforming loan limits.
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