{
  "dataset": "FRC Overlay Friction Index \u2014 Historical Series",
  "source": "financeratecalc.com/frc-research.html",
  "description": "Quarterly OFI values tracking US mortgage lender overlay strictness. 0=agency minimums only, 100=extreme restriction. First systematic time series of underwriting overlay behavior.",
  "methodology": "Agency guideline comparison across 7 lender categories, anonymous denial data, 23-year underwriting pattern analysis. Not specific named lenders.",
  "citation": "FinanceRateCalc Research. (2026). FRC Overlay Friction Index Historical Series. financeratecalc.com/frc-ofi-data.json",
  "series": {
    "OFI": {
      "description": "Overlay Friction Index \u2014 aggregate overlay strictness",
      "scale": "0-100",
      "history": [
        {
          "period": "Q4 2024",
          "value": 44,
          "direction": "stable",
          "note": "Rate environment 7.2-7.8%, elevated friction"
        },
        {
          "period": "Q1 2025",
          "value": 48,
          "direction": "up",
          "note": "Liquidity tightening, conservative overlays increasing"
        },
        {
          "period": "Q2 2025",
          "value": 52,
          "direction": "up",
          "note": "Peak tightening cycle, 640+ credit overlays widespread"
        },
        {
          "period": "Q3 2025",
          "value": 49,
          "direction": "down",
          "note": "Slight loosening, rate expectations shifting"
        },
        {
          "period": "Q4 2025",
          "value": 38,
          "direction": "down",
          "note": "Rate environment stabilizing, Non-QM expanding"
        },
        {
          "period": "Q1 2026",
          "value": 41,
          "direction": "up",
          "note": "Conservative banks beginning to tighten again"
        },
        {
          "period": "Q2 2026",
          "value": 47,
          "direction": "up",
          "note": "DTI overlay compression at large lenders, Non-QM offsetting"
        }
      ]
    },
    "FHA_Flexibility_Tracker": {
      "description": "% of FHA lenders following agency minimums without overlay",
      "history": [
        {
          "period": "Q4 2025",
          "value": 58,
          "unit": "percent"
        },
        {
          "period": "Q1 2026",
          "value": 60,
          "unit": "percent"
        },
        {
          "period": "Q2 2026",
          "value": 62,
          "unit": "percent",
          "direction": "improving"
        }
      ]
    },
    "SSDI_Acceptance_Rate": {
      "description": "Estimated % of lenders applying agency-standard SSDI gross-up",
      "history": [
        {
          "period": "Q4 2024",
          "value": 52,
          "unit": "percent"
        },
        {
          "period": "Q2 2025",
          "value": 55,
          "unit": "percent"
        },
        {
          "period": "Q4 2025",
          "value": 61,
          "unit": "percent"
        },
        {
          "period": "Q2 2026",
          "value": 71,
          "unit": "percent",
          "direction": "improving",
          "note": "Fair lending scrutiny driving improvement"
        }
      ]
    }
  },
  "signals": {
    "active_q2_2026": [
      {
        "signal": "FRC-TIGHTENING-001",
        "name": "Conservative DTI Compression",
        "severity": "moderate",
        "description": "Large bank overlays reducing DTI caps from 50% toward 43-47%",
        "started": "Q2 2026",
        "status": "active"
      },
      {
        "signal": "FRC-EXPANSION-002",
        "name": "Non-QM Loosening",
        "severity": "positive",
        "description": "Bank statement programs reducing history requirement 24\u219212 months",
        "started": "Q1 2026",
        "status": "active"
      },
      {
        "signal": "FRC-RECOVERY-003",
        "name": "SSDI Acceptance Recovery",
        "severity": "positive",
        "description": "Fair lending pressure improving SSDI gross-up application",
        "started": "Q3 2025",
        "status": "ongoing"
      },
      {
        "signal": "FRC-STABLE-004",
        "name": "VA Residual Income Strength",
        "severity": "stable",
        "description": "VA specialist lenders holding near agency minimums",
        "started": "Q1 2026",
        "status": "stable"
      }
    ]
  },
  "last_updated": "2026-05-28",
  "next_update": "2026-08-31",
  "license": "CC BY 4.0 \u2014 free to use with attribution"
}