Mortgage Credit Supply Expands as Refinance Activity Grows The Mortgage Credit Availability Index (MCAI), a survey from the Mortgage Bankers Association (MBA) based on data from ICE Mortgage Technology, showed an increase in mortgage credit availability in February. The index rose by 1.1% to 107.1, reflecting broader access to lending. A declining MCAI signals tighter lending rules, while a rising index indicates more lenient credit conditions. The index was benchmarked at 100 in March 2012. Among the components, the Government MCAI fell by 0.8%, while the Conventional MCAI rose by 2.7%. Within the Conventional MCAI, the Conforming MCAI increased by 2.0%, and the Jumbo MCAI rose by 2.9%. Joel Kan, MBA’s VP and Deputy Chief Economist, noted that lenders expanded mortgage credit supply in February, particularly for refinancing, as mortgage rates declined in January and February. Most of the growth in credit supply was concentrated in loan programs allowing cash-out refinance and investor home purchases, though these remained limited to borrowers with lower loan-to-value (LTV) ratios. The Jumbo MCAI saw a 3% increase for the second consecutive month, driven by growth in non-qualified mortgage (non-QM) loan programs. The Government MCAI was the only component to decline, as lenders tightened underwriting standards in response to a recent rise in FHA mortgage delinquency rates. The iMortgage Indices—Government, Conforming, and Jumbo MCAI—highlight specific trends. The Jumbo MCAI increased by 2.9% among the Conventional MCAI’s component indices, while the Conforming MCAI rose by 2.0%. The Conventional MCAI itself grew by 2.7%, and the Government MCAI dropped by 0.8%. The MCAI’s overall increase to 107.1 underscores broader improvements in credit availability.#mortgage_bankers_association #ice_mortgage_technology #joel_kan #government_mcai #conventional_mcai
