Mortgage Credit Availability Boosted by Jumbos

Even though implementation of the Freddie Mac portion of the new 97 percent conventional loan program is still weeks away the program appears to be having an impact on credit availability.  The Mortgage Bankers Association (MBA) said today that its Mortgage Credit Availability Index (MCAI) ticked up in February and that the new loans may be partially responsible.

The MCAI increased by 0.7 percent to 118.6 in February.  Increases in the index, which was benchmarked to 100 in March 2012, indicate that lending standards are loosening.

“Credit availability improved marginally in February, led by further increases in jumbo loan programs, and additional take-up of Fannie Mae’s 97 LTV program,” said Mike Fratantoni, MBA’s Chief Economist.  “More than half of investors are now offering a 97 LTV program, and Freddie Mac announced that their program will be available in mid-March.  In terms of conforming credit, this was offset by somewhat tighter constraints on cash-out loans and investors with multiple financed properties.”

There are four components to the MCAI, the Conventional Mortgage Credit Availability Index, the Government Mortgage Credit Availability Index, the Conforming Mortgage Credit Availability Index, and the Jumbo Mortgage Credit Availability Index, with historical data back to 2011.  The Jumbo component rose 1.4 percent in February while the Conventional and Government MCAIs each were up 0.6 percent.  These were offset slightly by the Conforming MCAI which declined from 113.6 to 113.4.

MBA constructs its credit accessibility indices from data gathered through its Weekly Mortgage Applications Survey and data from the AllRegs® Market Clarity® product. The Government MCAI examines FHA/VA/USDA loan programs, while the Conventional MCAI examines non-government loan programs. Similarly, the Jumbo MCAI examines everything flagged as “Jumbo” while the Conforming MCAI examines loan programs that fall under conforming loan limits.

For Real Estate news on mortgage rates, jumbo loans, fha loans, loan refinancing, home sales and housing market tips for Mortgage and real estate industry please visit us at  or call us today 702-507-4170. 

About Superior Mortgage Lending LLC

Superior Mortgage Lending LLC is a full service mortgage broker located in Las Vegas, Nevada. Our goal is to provide excellent service to you throughout the process. NMLS # 372130 Nevada License # 3582 California License # 603K964 Arizona License # 0119906 8867 W Flamingo Road STE 200 Las Vegas, NV 89147 (702)507-4170 /
This entry was posted in Commercial Real Estate Lending, Commerical Loans, Conventional Loans, FHA Mortgage, Government Loans, Home Mortgage, Home Refinance, Jumbo Loans, Loan Programs, Mortgage Interest, Mortgage Refinance Nevada, refinance loans, VA Loans, VA Loans Las Vegas. Bookmark the permalink.

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