Kahn cited “changes in GSE policy that reduced the availability of high LTV refinancing loans” as the reason for the drop in credit availability.
“We did see the addition of refinancing programs aimed at cutting costs for low-income borrowers, but the full impact of these new lending programs remains to be seen,” he said. “Apart from the supply cuts due to the policy change, there has been a rollback of ARM’s giant offerings, resulting in the lowest giant loan supply since February 2021.”
The regular MCAI fell 17.1%, while the government MCAI fell 1.4%. Of the component indices of the regular MCAI, the Jumbo MCAI was down 11.5% and the corresponding MCAI was down 23.5%.