Mortgage credit availability increased slightly in February 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 increased 0.7 percent to 118.6 in February.  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.

"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." 

CONVENTIONAL, GOVERNMENT, CONFORMING, AND JUMBO MCAI COMPONENT INDICES

MBA now reports on five total measures of credit availability as part of the monthly MCAI release: the Total Mortgage Credit Availability Index, 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. 

Of the four component indices, the Jumbo MCAI saw the greatest easing (up 1.4 percent over the month) followed by the Conventional and Government MCAI (both up 0.6 percent). The Conforming MCAI decreased slightly over the month from 113.6 last month to 113.4 this month.