Press Release


Title: Mortgage Credit Availability Declined Slightly in August as Market Begins to Adjust to QM Requirements
Source:   MBA
Date: 9/9/2013

WASHINGTON, D.C. (September 9, 2013) — Mortgage credit availability decreased in August according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from the AllRegs® Market Clarity® product.

The MCAI decreased 0.7 percent to 111.5 in August, the first drop following four consecutive months of increases. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. The index was benchmarked to 100 in March 2012 and if it had been tracked in 2007, would have been roughly 800.

The decrease in the MCAI in August was driven by decreases in availability of loans that have an interest-only feature. In addition, lenders are in some cases dropping offerings for loans with terms greater than 30 years. Shifting borrower eligibility requirements on jumbo loan programs led to offsetting increases and decreases to the MCAI.  

“The slight decline in the MCAI in August reflected a reduction in the availability of certain loan features, particularly interest-only and terms exceeding 30 years.  As these loan features are outside of the qualified mortgage (QM) definition, these changes may reflect the beginning of QM implementation, and the fact that Fannie Mae and Freddie Mac are limited to acquiring loans that meet the QM definition,” said Mike Fratantoni, MBA’s Vice President of Research and Economics.
 
Source: Mortgage Bankers Association; Powered by AllRegs® Market Clarity®


ABOUT THE NEW MORTGAGE CREDIT AVAILABILITY INDEX
The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit.

The MCAI is calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.). These metrics and underwriting criteria for over 85 lenders/investors are combined by MBA using data made available via the AllRegs® Market Clarity® product and a proprietary formula derived by MBA to calculate the MCAI, a summary measure which indicates the availability of mortgage credit at a point in time. Base period and value for all indexes is March 31, 2012=100.

To learn more about the AllRegs Market Clarity platform visit
http://answers.allregs.com/MCAI-Market-Clarity.  For more information on the Mortgage Credit Availability Index, including Methodology, Frequently Asked Questions and other helpful resources, please visit www.mortgagebankers.org/MortgageCredit or contact MBAResearch@mortgagebankers.org.

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ABOUT MORTGAGE BANKERS ASSOCIATION:
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mortgagebankers.org.

MBA Press and Media (Index/Methodology/Economic Insight):
For more information contact: Matt Robinson, MBA (202) 557-2727 or MRobinson@mortgagebankers.org

ABOUT ALLREGS:
First introduced in 1989, AllRegs® is used by virtually all of the top 100 lenders as well as throughout numerous governmental agencies, including Fannie Mae, Freddie Mac, the FHLBs, FHA, VA, RHS, Ginnie Mae, and more. AllRegs is the exclusive electronic publisher of the Fannie Mae and Freddie Mac Single and Multi-Family Seller/Servicer Guides and The Federal Home Loan Banks’ MPF Program Guidelines. Products include single and multifamily underwriting & insuring guidelines as well as federal compliance laws and regulations, state compliance laws and regulations with plain-language analyses, contract publishing services, policy manuals and a library of historical guidelines. The educational division, AllRegs Academy, offers virtual and live training, as well as designation and practical guides. The Professional Services Group develops custom guides, policy manuals and other documents on a contract basis. For more information, call (800) 848-4904 or go to www.allregs.com.

AllRegs Press and Media:
For more information contact: Krista Sabol, AllRegs (651) 289-4809 or ksabol@allregs.com  

AllRegs Sales Inquiries:
For more information, contact your Regional Account Executive (800) 848-4904 or sales@allregs.com

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:   www.mba.org.