"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."
"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."
"The MCAI measures mortgage credit availability using borrower eligibility factors such as credit score, loan type and loan-to-value ratio. It is calculated by MBA using underwriting criteria from more than 95 lenders and investors, with data provided by ICE Mortgage Technology."
The Mortgage Credit Availability Index (MCAI) showed mixed results, with the Conventional MCAI rising 2.7% while the Government MCAI fell 0.8%. Within conventional lending, the Jumbo MCAI increased 2.9% and the Conforming MCAI rose 2.0%. Lenders expanded mortgage credit supply in January and February, particularly for refinancing as mortgage rates decreased. Growth concentrated in cash-out refinance programs and investor home loans, though limited to lower loan-to-value borrowers. The jumbo index grew 3% for the second consecutive month, driven by non-QM loan programs. Government lending declined as lenders tightened underwriting standards due to rising FHA mortgage delinquency rates. The MCAI measures credit availability using borrower eligibility factors including credit score, loan type, and loan-to-value ratio.
#mortgage-credit-availability #conventional-vs-government-lending #refinancing-activity #underwriting-standards #jumbo-and-non-qm-loans
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