A look at Biden’s first week in office

This episode reviews last week’s inauguration of President Joe Biden, examining which housing issues the new administration has already taken action on.

Mortgage Tech Demo Day

Tune in to our live Virtual Demo Day on February 2nd to experience demos from the most innovative loan origination and valuation tech companies in the industry.

If consumers aren’t holding lenders back, then who or what is?

The challenge for lenders and investors is understanding how to meet borrowers where they are without layering on risk or getting bogged down in third-party intermediation.

HomeBridge’s Brian White on diversity at a practical level

HomeBridge's Brian “Woody” White discusses ways to increase diversity within the housing finance industry.

Mortgage

Mortgage credit availability tumbles to 5-year low

The Jumbo MCAI experienced a 36.9% freefall

The availability of mortgage credit in March crashed to the lowest level since June 2015, led by a pull-back in jumbo and non-QM lending, according to the Mortgage Bankers Association.

The trade group’s monthly Mortgage Credit Availability Index plummeted by 16.1% to 152.1 last month, MBA said on Thursday.

The Conventional index, meaning loans not backed by the government, decreased 24.2%, while the Conforming index that includes loans bought by Fannie Mae and Freddie Mac dipped by 2.7%, MBA said. The Jumbo index experienced a 36.9% freefall and the Government index that includes loans backed by the Federal Housing Administration and the Department of Veterans Affairs took a 6.6% downturn.

“There was a reduction in the availability of loans with lower credit scores and higher LTV ratios, and the largest pullback came from the jumbo and non-QM space,” said Joel Kan, MBA associate vice president of economic and industry forecasting.

Lenders are pulling back as the economic shutdown aimed at stemming the spread of COVID-19 spiked concern that borrowers wouldn’t be able to pay their bills, Kan said.

“This month’s release highlights the large retreat from jumbo and non-QM investors due to a sharp drop in liquidity,” Kan said. “Lenders are making credit criteria changes to account for the increased likelihood of forbearance and defaults, as well as higher costs.”

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