Key Factors Impacting Borrower Credit

In today’s mortgage market it is vital that borrowers understand what impacts their credit profile and ability to obtain financing.  Here are some quick tips for borrowers looking to improve their credit profiles.

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Paying Collection Accounts

Believe it or not, it may be counterproductive to pay off an old debt. Under The Fair Credit Reporting Act, negative defaults such as collections are removed from your report after 7 years. Making a payment on an old debt, say from 5 years ago, re-ages that debt and makes it current. Again, this is noted on your file and has a negative impact on your score, causing it to fall. 

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Before taking a course of action to make payment on an old debt, consult a professional. Re-aging old information can have a huge negative impact on your credit score. 

What’s not on your FICO Score?

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Although a FICO score on your credit report has many considerations that are used to determine your credit worthiness, there are many personal items they ignore. U.S. Law prohibits consideration of the following when determining your credit score.

Marital status, national origin, gender, race, religion, the color of your skin, 

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receipt of public assistance, these have no place in the determination of your credit score. 

While other scores might, FICO does not consider your age as a factor. Similarly, employment history, employer, date employed, title, your salary and occupation are not used. However it is worth noting that lenders may consider this information as part of their scrutiny.


The “DO’s”?

>>Do pay your bills on time.?

>>Do keep credit cards balances low (try to keep balances under 1/3 of your ?current credit limit.?

>>Do pay off debt rather than opening and moving balances between credit cards.?

>>Do apply and open new credit cards (ONLY when NEEDED).????


>>Do NOT max your credit cards.

>>Do NOT miss a credit card payment. 

>>Missing a payment because you forgot not only impacts your credit score negatively, but also can affect your interest rate for that card.

>>Do NOT have your credit report pulled multiple times within a short period.

>>Do check your credit report at least once a year for accuracy and completeness of information.?

These are just a few tips that can help borrowers improve their credit profiles.  For more information or to speak with a credit coach visit www.getcredithealthy.

About The Author

An Alliance That Adds To Our Industry

NEXT Mortgage Events, creator of NEXT women’s mortgage technology summit, has engaged in a strategic alliance with Housing Finance Strategies, a Washington, DC-based advisory firm led by renowned industry veteran and award winner Faith Schwartz, former executive director of HOPE NOW.

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This alliance enables NEXT to establish a Washington, DC presence and expand its footprint into housing policy and regulations. It also allows Housing Finance Strategies to increase its visibility and reach among the NEXT community, which includes thousands of high ranking women mortgage executives, and the organizations that support them.

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The companies plan to collaborate on a variety of projects that advance executives’ industry knowledge of housing policy and regulations, and promote effective deal-making.

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“This collaboration avails a new level of intel to the NEXT community and puts a lot of power behind our growth plans,” said Jeri Yoshida, co-founder of NEXT. “Housing Finance Strategies is respected  across the housing industry for its expertise, and Faith is renowned for decades of noteworthy accomplishments. We’re thrilled for the advances this collaboration will bring to the industry.“ 

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“Having served as the keynote speaker at the NEXT Technology conference earlier this year on behalf of FormFree, I was enamored with the niche NEXT serves,” said Faith Schwartz, Owner of Housing Finance Strategies, LLC. “The intersection of my consulting firm — with clients ranging from big 4 consulting firms to non-banks and fintechs — and NEXT is a tremendous fit and the timing with all the housing related issues in play is prescient.”  

“NEXT is known for delivering the type of executive intel that changes business outcomes, as well as individual careers,” said Molly Dowdy, co-founder of NEXT. “This strategic alliance will turbocharge what NEXT delivers as Faith and Housing Finance Strategies bring unrivaled thought leadership to the NEXT community on a consistent basis.”

The two firms will continue to operate their businesses and corporate entities without a change in structure while leveraging the benefits of the alliance.

About The Author

Digital Mortgages And Profitability

Since Quicken Loans launched that now famous Super Bowl AD for Rocket Mortgage, there has been a great deal of talk, energy, and resources focused on the front end tools and customer experience as it relates to a digital mortgage.  

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But what many in the industry are missing is that just delivering on the front end of the digital mortgage experience doesn’t drive down costs or increase profitability where lenders need it to, companies must automate the entire mortgage process to realize true cost savings.

Where companies can gain the greatest ROI while driving profitability is to automate the many manual tasks throughout the mortgage process.

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The origination process between originator, processor, borrower, realtor, title agent and all other parties to the transaction is very interactive to say the least.  In our highly regulated lending environment, complexity has created additional processes and more room for error. Loan quality takes a hit as more manual checklists have been created, and more data must be validated adding time, money and resources to the process.

For the vast majority of mortgage lenders, email is the main communication method while the CRM and LOS systems are the central lead and loan repositories. This means leads, preapprovals, loans, business contacts and documents all must be dispositioned in systems that must focus on quality.

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The process becomes chaotic with documents in different places, tasks being completed by different people at different times with no real way to manage, track, and communicateproperly. This lengthens turn-times by creating bottlenecks at various stages in the loan process increasing the cost to originate. 

Communication then becomes reactive rather than proactive.  When this happens, even the greatest digital point-of-sale tool will not deliver the digital mortgage experience, nor drive down costs that today’s lender is looking for.

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The issues are exacerbated with a refi-boom or when purchase season comes along and sometimes we’re forced to throw more people and manual processes at the problem, again adding to the cost to originate.

So what’s the answer?

To truly deliver on the digital mortgage experience and drive down cost , lenders must not only provide a slick and engaging online point-of-sale tool, but they also must automate the backend mortgage process and communication touch points that impede a truly seamless mortgage experience for the borrower.

That begins with automating manual tasks and communication between parties with a solution that offers mortgage lenders the ability to truly enhance the areas of transparency and accountability that are often overlooked. We must consider automation not only around fulfillment staff and borrowers, but realtors, title agents, financial planners, and all other interested parties involved in a transaction. Keeping all parties in the loop is one thing, but automating that communication in a way that continues well after funding will lead to a much higher rate of repeat business.

The Digital Strategy should include ways for system-driven processes to unfold as we know more about the transaction. This way, team members don’t need to think about what needs to be done, when it needs to be done, and by whom it needs to be done. Leveraging web and mobile ready solutions is key, however anticipation may be even more key. 

The more we know up-front, the more we can automate further down the line lowering costs and improving profitability. With this type of automation, each individual involved in the transaction feels as though a truly personalized service is being provided.For lenders that want to truly deliver on the digital mortgage experience they must realize the importance of automating the entire mortgage process.  Lenders that put forth the energy and resources to automate the entire lending process will be able to overcome the “internal technology limitations” that are holding them back from delivering a truly memorable digital mortgage experience.  An experience that delivers enhanced communication throughout the lending process, reduces the cost to originate loans and increases lender profitability.

About The Author

Do eBooks Right

Right now eBooks might be thought of as being old fashioned, but in the mortgage industry they can have a profound impact. In the article “How To Design An eBook That Entices Downloads” by Rob Steffens, he says that people believe “text is dead,” it couldn’t be further from the truth. In fact, research has shown longer content pieces are most likely to score higher in search.

An eBook isn’t like any other blog post, however. It covers a topic in depth, building readers’ trust in your expertise. Ideally, it also arms them with insights they can make use of right away.

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When creating an eBook you can’t just place it haphazardly into any old template. A larger sheer volume of text means designing your eBook the right way is essential.

Let’s consider how to design an eBook that gets more people to download and read!

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1.) Create A Complete Cover

You can’t judge a book by its cover, but you can download one by it!

For decades, a beautiful and professional book cover has been a mark of quality. Your cover should convey the unique value of your eBook and how you’re positioned to provide it.

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There are several ways to make your cover more enticing:

>>Create a 3D rendering of your cover that makes it resemble a physical book.

>>Use a high-res, full-size image that combines text and graphical elements.

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>>Link your cover directly to your eBook preview to get people excited.

2.) Give Your Reader A Taste of What They’ll Get

A preview will make your eBook much more enticing. Your preview should live on the eBook landing page and draw on its finalized text and layout so it’s completely accurate.

Like your cover, your preview helps make the eBook more real. When people know what they’re getting, they are much more likely to trade the privacy of their email.

Here’s how to structure your eBook preview:

>>Provide the table of contents so readers can see the whole scope of your work.

>>Give access to a few pages of the work in a magazine-style “flipbook” format.

>>Show a grid of the infographics, tables, and charts readers will have access to.

3.) Make Your eBook Easy To Read

No matter what file format you use for your eBook, there are some basic things to keep in mind:

>>Typography should be clear – consider using double-spaced text for easier reading.

>>Subtle, branded colors win the day. With B2B eBook projects, a clean look is best.

>>Include page numbers and chapter names on each page to speed up navigation.

>>Use design elements like callout boxes and widgets to guide reader attention.

>>Start chapters with quick content previews and end them with summaries.

>>Use masthead graphics to define and separate each chapter of your eBook.

4.) Use Visuals To Your Advantage

When you’re thinking about how to design an eBook, it’s crucial to remember this: It gives you a huge canvas for visual creativity. You can – and should – integrate photos, illustrations, icons, and data-driven infographics to get your point across. This makes your eBook a page turner.

There are three steps:

Decide on the Overall Look of Your eBook.

Every choice you make in how to design an eBook should reflect your unique brand. Graphics can convey your story in a way people grasp at a glance. Don’t constrain yourself to stock photos: Consider illustrations or in-house photography for a more candid flavor.

Use Graphics to Make Text Accessible.

One of the most valuable roles of graphics is to make text friendlier. The flow of graphics helps direct the reader’s attention: For example, if you put an arrow on a page, your reader’s eye will follow it. Graphics can frame a page, emphasizing key points along the way.

Underline Your Point with Visuals.

If your eBook makes data-backed claims, present that data with graphics. A good infographic is much more memorable – and for many readers, much more believable – than raw statistics. That highlights the credibility your eBook should always aim to establish.

5.) End on A High Note

Just like any other piece of content, your eBook has a specific job to do. It doesn’t just raise awareness of your brand or portfolio: It drives readers toward a specific conversion.

What conversion action do you want your readers to take?

Once you have that answer – dictated by buyer persona and buyer journey stage – your eBook should compel action with an enticing incentive. Give your readers something for sticking with your eBook and they’ll feel like insiders, ready to take the next step with your brand.

When it comes to how to design an eBook, the basics are simple: Bring words and images together in convenient, useful ways that adds value. With these tips in mind, you can’t go wrong.

About The Author


It’s been said that artificial intelligence is the future, but I’d argue that AI is very much a thing of the here and now. It’s playing an increasingly significant role in marketing efforts, and is taking marketing automation to the next level. And during an era when customers are demanding fast and hyper-personalized service, AI-based technologies couldn’t be more critical. AI-based technologies bolster marketing automation efforts through personalized interactions. Your business can benefit on a multitude of fronts by embracing these game-changing advancements.

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Email marketing

It’s easy for emails to get lost in the shuffle of a busy day. After all, inboxes are overflowing with meeting reminders, work correspondence and plenty of promotions. Enticing a customer to simply open a marketing-related email can be challenging. But with the right tools, you can consider that challenge conquered. 

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AI-based technologies are helping marketers win the attention of potential customers in numerous ways. For instance, they’re allowing small- and medium sized businesses to improve their email marketing automation strategies by knowing who to target, when and how frequently.

Know your target:AI helps businesses understand – and foresee – customer behavior patterns, and detect which strategies email subscribers best respond to. It can also help businesses more effectively automate emails to ensure customers are receiving personalized correspondence and promotions relevant to their needs.

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Adding a personalized touch to emails pays off. A Statisa study shows that personalized emails had an open rate of 18.1 percent, compared to a 13.1 open rate for non-personalized emails. 

Engage thy customer:Of course, AI-generated emails should do more than attract customers – they should also engage them. Email subject lines can be tailored for each customer, for example, while the emails themselves might contain personalized offers. 

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Lead nurturing 

When it comes to gathering and analyzing customer information, we mortals are no match for the pace and efficiency of computers. AI-based programs are capable of processing user data at lightning speed, and can be hyper-responsive to customer needs.

Automating the data collection process can help simplify the lead-nurturing process for businesses, while AI can set the course for future marketing strategies.

Capturing information:AI provides marketers with the valuable information they need to close a sale. It tells us when someone has visited their site, which pages they visited and how much time they spent perusing products. 

Marketing teams are using this data to drive sales, and if statistics are any indication, it’s working. AI could lead to an economic boost of $14 trillion in additional gross value added (GVA) by 2035, according to Accenture research.

Automated actions:As I mentioned earlier, AI-based software doesn’t just benefit businesses in the long term — it can also be of tremendous value in the present. Through AI, valuable customer information is being captured in real time, and can be instantly used to tempt shoppers with personalized offers and targeted advertisements. Forrester has predicted that 20 percent of enterprises will begin using AI to make decisions and provide real-time marketing instructions.


Successful businesses strive to equip customers with the tools and services they need. The trouble is, it can be a bit tricky to determine what those needs are.

AI aid:While automation can help track previous purchases and user experiences, AI can take that information and make predictions on the potential for additional sales. It can determine whether a customer is a good candidate for additional products or services and establish which products a customer might be in the market for next. 

Once your sales and marketing teams are made aware of your business’s cross-selling potential, they can make customers aware of those additional offerings.


A happy customer is a loyal customer. AI can help you retain your existing customer base by providing you with a better understanding of client needs. You might think you already have a handle on that front with your CRM platform, but AI can provide a more complete, more actionable picture of your current customers.

Meantime, customers will appreciate the personalized service AI-based software offers, and are more likely to become repeat customers.

Reengaging past customers

Customers come and go – and they’ll come again with the right approach. Whatever the reason for losing a customer, it’s never too late to win them back – especially with some artificial assistance.

Helpful insights:AI can provide insight into how and why a customer left, and help determine the best way to reconnect. For example, it can be used to send an email with product recommendations based on a customer’s purchase history, or inform them of any relevant price drops.

If you’ve spent any amount of time looking into customer engagement and sales/marketing success strategy, you’re undoubtedly already familiar with the ways in which automation can help your business. Now, it’s time to build on those benefits by incorporating AI-based technologies into your marketing strategy. 

Businesses are becoming increasingly competitive and to remain relevant, AI-based technologies must be embraced.

About The Author

Biz Resolutions Gone Rogue

As we approach the second calendar quarter, we’re entering that precarious time when many begin to flail and outright fail with their New Year’s resolutions—no matter how impassioned or well-intentioned they were at the time of inception. This phenomenon is so pervasive that a litany of studies are “peeling back the onion” to reveal exactly why so many are unsuccessful in fulfilling career, life and self-enhancing promises we’ve made to ourselves. 

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One recent Psychology Today article reveals that there may be four specific reasons“you may be standing in the way of your personal growth.” These are goals that are unclear, or feeling overwhelmed, discouraged or not ready for the change. And, while having a backup plan is an anxiety-alleviating strategy often proffered by field pundits, an Elsevier-published study titled “How backup plans can harm goal pursuit: The unexpected downside of being prepared for failure”explores the notion that “the mere act of thinking through a backup plan can reduce performance on your primary goal by decreasing your desire for goal achievement.” Speaking of anxiety, failing at New Year’s resolutions just may be impacting your emotional health. A report published by correlates the “conflict between goals (inter-goal conflict) and conflicting feelings about attaining particular goals (ambivalence)” that are both “believed to be associated with depressive and anxious symptoms.”

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Whatever the reason your own New Year’s resolution has veered off-course, it’s never too late to rally, turn the tide and start realizing some quick successes. But it does take a bit of concerted effort, ideation and bona fide grit to make those resolutions a reality. In an effort to pull back the proverbial curtain, I tapped a variety of high-achievers and “serial doers”—“Firestarters” in various industries and trades to share advice on what it takes to start, create and even disrupt in order to achieve goals. Their anecdotal circumstances and points of advice also exemplify differences between people who actually make things happen and those who only think about making impactful changes, but never quite get there.

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#1:Be Persistent with a Purpose

Best-selling author, lauded corporate executiveand sought-aftermotivational speaker Steve Pemberton recommendsunleashing “the power of persistence” with visceral determination.Having overcome a litany of adversities growing up in the foster care system to ultimately become a C-Suite powerhouse for global leaders the likes of, Walgreens and Globoforce, Pemberton has walked the walk when it comes to “surthrival” and perseverance. Relative to the research mentioned above regarding the helpful or hurtful nature of back up plans, for Pemberton there was no such thing. There was simply no other option than to persist toward his goals, however small or large, that were doggedly pursued one at a time until, collectively, he reached that mountain peak. Then, he did it time and time again, also having spent much of his professional life helping others do the same. His childhood experiences not only gave him the resolve and tenacity to stay the course, but to do it with purpose and meaning—for Pemberton, a burning desire to “pay it forward” and help others break through obstacles in their own lives. 

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#2: Consistency Breeds Commitment

Ask people if they are committed individuals and many will say “yes,” however; commitment is often defined or regarded quite differently from culture to culture, and even person to person. Individuals often assert their commitment to their goals until a circumstance arises that knocks them off balance, comfortably absolving themselves of blame in the process. It’s no wonder a whopping 80 percent of New Year’s resolutions are purported to fail by February. “In order to remain committed to a goal or cause, one must conduct themselves with steadfast consistency in working toward it, and upholding it when you’ve achieved it—no matter what hardships present along the way,” urges social activist and acclaimed personal injury attorney Christopher Chestnut, partner at The Chestnut Law Firm. Despite Chestnut’s amazing early career trajectory, including recognition from former President Barack Obama (who was Senator at the time) for courtroom excellence, earning a National Bar Association award and winning a multi-billion dollar lawsuit against Big Tobacco, he suddenly found himself immersed in challenges threatening his reputation, livelihood and future at large. This included being in a dispute with his former mentor. While Chestnut was faced with possibly “losing it all,” having many chances to quit, his devotion to the idea of “justice because you deserve it”—the actual slogan of his law firm—gave him the emotional strength and fortitude to remain committed to the profession he worked so hard to attain. Consistency forges a path and, rather than focusing on the end destination, holding on to the ideals for “why” you want to grow can reinforce your commitment and serve as guideposts to help you navigate those inevitable bumps in the road. 

#3: Remain in Relentless Pursuit

Russian-born Eugene Gold grew up poor, ultimately immigrating to the United States with the hope of a better life. In the process, he faced setbacks too numerous to count, from financial to professional to social. But he was relentless in working toward his career goals. So much so, Gold was coined a “relentless-preneur” for his unwavering belief that rejection actually fuels success. Gold reveres failure and regards rejection as an asset. Gold points out that, “every single time you fail and every single time you get rejected, you are that much closer to a ‘yes’ and more knowledgeable at how to get there.” It’s with this maverick mentality that Gold built a business that’s grown by a staggering 4,400 percent. His incredible, fearless determination landed his company at No. 65 on the coveted Inc. 5000, also appearing on Entrepreneur 360 list twice. Producing such staggering “against the odds” results is certainly difficult, but entirely attainable with the right mindset. 
Another fast track case-in-point is Chi Ta, a self-made millionaire who grew his Airbnb business to $2.4 million upside in nine months, making him one of the world’s largest Airbnb hosts by dollar volume. He not only attributes his rapid-fire success to determination, dedication and consistency, but also by being willing to take those calculated risks and leaps of faith needed to push past the status quo and not just be good … but great. Before growing his Airbnb empire, Ta was working toward his “wealth” goals in the mortgage industry where he served for over a decade. But, when he uncovered gig economy opportunity in the homeshare space and curated what he felt was a powerful strategy related thereto, he brazenly pivoted and shifted his professional point of focus on the new pursuit. Today, Ta is one of the global leaders in his field and his now mentoring others on how to achieve just the same. Gold and Ta are examples of how quickly things can get back on track after an undesirable result. Their mega success demonstrates that people falling behind on their New Year’s resolutions can actually parlay pitfalls into renewed intentions that can reinvigorate. 

#4:Value and Demonstrate Loyalty

It often takes a strong character to accomplish things in life, and this holds true for New Year’s resolutions as well. This according to “Character Coach” Gary Waters who enjoyed a 30-year career as a NCAA basketball head coach. Waters believes that character begins by being loyal to yourself and that quitting is the most disloyal thing you can do. Loyalty means different things to different people, of course. For Waters, loyalty is about the commitment one makes to a cause. It involves a feeling of devotion or obligation to something in both good times and bad. Other definitions describe loyalty as involving faithfulness to something to which one is bound by pledge or duty. In all instances, however, loyalty is about integrity—keeping one’s word or upholding expectations as demonstrated through one’s actions, optimally in a sustained and habitual manner. Waters believes that ingraining a sense of loyalty to one’s own wants and needs is a fundamental aspect of character building. Once you’ve mastered this for yourself, you can then impart the value of loyalty on those you have an impact on—be that in the workplace, at home or on a playing field. 

Irfan Khan also knows a thing or two about loyalty. As the president and CEO of Bristlecone, a company whose size he has doubled the last four years by completely centering it around the needs and wants of his customers, Khan is an expert in “antifragility.” A concept defined by popular economic thinker Nassim Taleb, an antifragile system is one that, “instead of breaking under stress and change, thrives under it. The antifragile grow and improve from external shocks.” While typically applied to supply chain management and a consumer-centric approach and attitude in business, Khan asserts that trials and tribulations that test and attempt to undermine one’s loyalty can, and should, actually make that loyalty stronger and uncompromising. 

#5: Recalibrate When Required

It is to be expected that one will face stress and difficulties in their road to successful resolutions, but some of those roadblocks may be signs it’s prudent to rethink your goals altogether. Career coach Sheeba Forbes faced this same dilemma when starting her practice intended to help women advance in the workplace. Many times, as her business was establishing itself, Forbes had to step back and re-evaluate if a particular goal was what she actually wanted—or even needed—or if it was time to “course correct” and adapt her objectives slightly to accomplish the bigger picture of what she set out to achieve. This ability and willingness to readjust and reacclimate to new conditions and situations taught her the value of taking a break, stepping back to re-evaluate goals and ensure the “why” behind them still aligns with current circumstances and desires. To this point, Dr. Quinella Minix, a personal performance coach, concentrates on intrinsic motivation. She advocates a focus on knowing what drives you and why. Minix underscores that it’s easy to get distracted by the “wrong why,” which can lead you down a path that wastes time and energy and can often take you further away from your goal.

The demonstrated value of strategic recalibration aside, when it comes to getting New Year’s resolutions back on course, for many the secret sauce is simply a matter of maintaining one’s vision, focus and persistence. This mix is what helped former NFL wide receiver Marques Colston become the New Orleans Saints all-time leading wide receiver (one of the top 50 in NFL history for receiving touchdowns) and, today, an entrepreneur helping retired athletes and other professionals become skilled entrepreneurs and investors in their own right. “Even though I attended a small school, my ‘plan A’ was to go to the NFL,” Marques notes. “When people asked me if I had a ‘plan B,’ I would respond that my ‘plan B’ was for my ‘plan A’ to work. I just didn’t see it any other way. It was all or nothing.”  

Can this “all or nothing” mentality help the throngs of folks failing with their New Year’s resolutions reel it back in and taste victory in their own right? It seems to me that such staunch intentions can certainly be a helpful means toward that end. But reality is there’s no one single method that can guarantee goal-setting success. The insights and perspectives above can help you ascertain what’s missing in your own plight and freshen your approach, optimally lighting that fire in your belly and sustaining it until you cross the finish line. It may not be easy, but perhaps you can perceive this truth as a thrill rather than a kill.

About The Author

Mortgage Credit Availability Increased In March

Mortgage credit availability increased in March according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.

The MCAI rose 1.1 percent to 182.1 in March. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. The Conventional MCAI increased (3.6 percent), while the Government MCAI declined (1.2 percent). Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 5.2 percent, while the Conforming MCAI increased by 1.4 percent.

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“Credit availability increased in March, primarily due to a spike in jumbo mortgage offerings. The jumbo sub-index increased 5 percent and reached its highest level since last November, as the recent decline in mortgage rates led to a jump in refinances from borrowers with larger loans,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The credit supply for government loans decreased in March, as investors continue to reduce FHA and VA streamline refi offerings.” 


The MCAI rose 1.1 percent to 182.1 in March. The Conventional MCAI increased (3.6 percent), while the Government MCAI declined (1.2 percent). Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 5.2 percent, and the Conforming MCAI increased by 1.4 percent. 

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The Conventional, Government, Conforming, and Jumbo MCAIs are constructed using the same methodology as the Total MCAI and are designed to show relative credit risk/availability for their respective index. The primary difference between the total MCAI and the Component Indices are the population of loan programs which they examine. The Government MCAI examines FHA/VA/USDA loan programs, while the Conventional MCAI examines non-government loan programs. The Jumbo and Conforming MCAIs are a subset of the conventional MCAI and do not include FHA, VA, or USDA loan offerings. The Jumbo MCAI examines conventional programs outside conforming loan limits, while the Conforming MCAI examines conventional loan programs that fall under conforming loan limits.

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The Conforming and Jumbo indices have the same “base levels” as the Total MCAI (March 2012=100), while the Conventional and Government indices have adjusted “base levels” in March 2012. MBA calibrated the Conventional and Government indices to better represent where each index might fall in March 2012 (the “base period”) relative to the Total=100 benchmark.                                                       

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The Total MCAI has an expanded historical series that gives perspective on credit availability going back approximately 10-years (expanded historical series does not include Conventional, Government, Conforming, or Jumbo MCAI). The expanded historical series covers 2004 through 2010, and was created to provide historical context to the current series by showing how credit availability has changed over the last 10 years – including the housing crisis and ensuing recession.  Data prior to March 31, 2011, was generated using less frequent and less complete data measured at 6-month intervals and interpolated in the months between for charting purposes. Methodology on the expanded historical series from 2004 to 2010 has not been updated.