Mortgage credit continued to trend higher in February, following a steady increase in availability since November 2013, the latest report from the Mortgage Bankers Association revealed.

The mortgage credit availability index edged higher 0.44% to 113.5 in February from 113 in January.

If the MCAI had been tracked in 2007, it would have sat around 800. The index was benchmarked to 100 in March 2012.

"For the third month in a row, mortgage lenders and investors slightly expanded credit offerings in February on net, as a result of offsetting factors,” said Mike Fratantoni, MBA’s chief economist. 

"Specifically, the recently implemented QM/ATR sections of the new Consumer Financial Protection Bureau regulations stipulate that ARM loans must qualify at the highest allowable rate for the first five years of the loan,” he continued.

Because of this, many investors have discontinued loans whose interest rate adjusts after only 3 year (also known as 3/1 ARMS). 

But despite the pull back in the 3/1 programs, lenders and investors added several new 5+ year ARM programs, including those for Jumbo loans, to their repertoire resulting in a net increase to the MCAI, Fratantoni explained. 

Most Popular Articles

CFPB to consider changing or eliminating TRID rule

The CFPB has been taking a long, hard look at some of its rules and regulations. Next up on its list to review is TRID, and it looks like eliminating the rule entirely is not off the table.

Nov 20, 2019 By

Latest Articles

Lenders are making more money on mortgages than they have since 2012

It’s looking like 2019 is going to end up being a great year for the mortgage business. Not only is the business on track for the highest origination volume in at least three years, lenders are now making more money per loan than they’ve made in almost seven years.

Nov 21, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please