Mortgage

MBA: Mortgage credit availability remained unchanged in February

Declines in conventional programs offset by government-backed programs

In February 2016, mortgage credit availability remained unchanged, according to the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association, which analyzes data from Ellie Mae’s AllRegs market clarity business information tool.

The MCAI remained unchanged at 123.8 in February. A decline in the MCAI indicates that lending standards are tightening, whereas increases in the index indicate loosening credit.

The conforming MCAI saw the greatest loosening and increased 1% over the month, followed by the Government MCAI at .6%. The Jumbo MCAI decreased .6% and the Conventional MCAI decreased .8% over the month.

"Credit availability was flat over the month,” said Lynn Fisher, MBA vice president of research and economics. “Slight declines in conventional programs aimed at low-to-moderate income borrowers were offset by increasing availability of government-backed programs.”

“More than half of the investors in our credit availability data set are now offering some form of a conventional low down payment loan program which is targeted at lower-income borrowers and first-time home buyers and generally allows a down payment as low as 3%," he said.

The monthly MCAI report consists of five measures of credit availability:

  • Total mortgage credit availability index
  • Conventional mortgage credit availability index
  • Government mortgage credit availability index
  • Conforming mortgage credit availability index
  • Jumbo mortgage credit availability index

About the Author

Most Popular Articles

Freddie Mac: Mortgage rates reverse course from last week’s low

This week, the average U.S. fixed rate for a 30-year mortgage jumped to 3.69%. That’s still more than a percentage point lower than the 4.85% of the year-earlier week.

Oct 17, 2019 By

Latest Articles

How to survive the disruption of the mortgage industry

Incumbents are being displaced by software companies in industries across the globe, ours included, and it’s worthwhile to understand where our industry is in the process so you can adapt to ensure your lending business – and people – survive the process.

Oct 21, 2019 By