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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 58 September 2025 J O U R N A L Lending/Originations ARMS LEADING THE WAY IN MORTGAGE CREDIT AVAILABILITY SNAPSHOT T he Mortgage Credit Availability Index (MCAI), a survey from the Mortgage Bankers Association (MBA) that examines data from ICE Mortgage Technology, indicates that mortgage credit availability rose in July. This is according to a recent report that revealed the share of increases shown and whether credit is loosening or tight- ening for potential homebuyers. In July, the MCAI increased by 0.2% to 103.9. While an increase in the index signifies loosening credit, a decrease in the MCAI suggests tighter lending rules. In March 2012, the index was bench- marked at 100. While the Government MCAI fell by 0.2%, the Conventional MCAI rose by 0.5%. The Conforming MCAI decreased by 0.5%, while the Jumbo MCAI rose by 0.9% among the Conventional MCAI's component indices. "Credit availability edged slight- ly higher in July, driven by increased availability of ARM loans," said Joel Kan, MBA's VP and Deputy Chief Economist. "This development was consistent with a steeper yield curve and the jumbo-con- forming spread back in negative territory. The average jumbo rate was around 8 basis points lower than the average conforming rate in July. Additionally, data from a separate survey showed that ARM loan applications have picked up in recent months, although activity is still muted compared to historical averages. Credit availability of conforming loans declined slightly over the month, mostly due to a pullback in renovation loans." Conventional, Government, Conforming, & Jumbo MCAIs Using the same technique as the Total MCAI, the Conventional, Government, Conforming, and Jumbo MCAIs are created to demonstrate the relative credit risk and availability for their respective indices. The population of loan programs that are examined is the main distinction between the Component Indices and the entire MCAI. While the Conventional MCAI looks at non-government loan programs, the Government MCAI looks at FHA, VA, and USDA loan programs. FHA, VA, and USDA loan offerings are not included in the Jumbo and Con- forming MCAIs, which are a subset of the standard MCAI. Conventional lending programs that come within conforming loan limitations are examined by the Conforming MCAI, whereas convention- al programs outside of conforming loan limits are examined by the Jumbo MCAI. Note: The Conventional and Govern- ment indices have modified "base levels" in March 2012; however, the Conforming and Jumbo indices have the same "base levels" as the Total MCAI (March 2012=100). To more accurately depict where each index might be in March 2012 (the "base period") in relation to the Total=100 benchmark, MBA calibrated the Conventional and Government indices. Data before 3/31/2011 was generated using less frequent and less complete data measured at six-month intervals, interpolated in the months between for charting purposes.