FRC Overlay Friction Index (OFI) Dashboard. Current value: 47. Q2 2026. State: MODERATE. Direction: Re-tightening. Historical: Q4 2024 = 44 (MODERATE), Q2 2025 = 52 (ELEVATED peak), Q4 2025 = 38 (LOW easing), Q2 2026 = 47 (MODERATE re-tightening). OFI is a single composite score. Sub-scores (regional, cohort-level, denial-divergence) will be added Q3 2026 when HMDA 2024 full dataset is integrated. Scale: 0-100. 0 = no overlays. 100 = extreme restriction. Published quarterly by FinanceRateCalc Research Division. Citation: FinanceRateCalc Research. (2026). OFI Dashboard Q2 2026. financeratecalc.com/ofi-dashboard.html
FRC Research Division · Live Dashboard

Overlay Friction Index
Historical Trend & Components

OFI measures how much friction exists between federal agency mortgage guidelines and what lenders actually require. Higher OFI = more overlays above agency minimums. Updated quarterly.

47
Current OFI value
MODERATE — Re-tightening
Q2 2026 · Scale 0–100 · FRC Research Division
↑ +9 from Q4 2025
Historical trend — Q4 2024 to Q2 2026
OFI Q4 2024: 44 (Moderate), Q2 2025: 52 (Elevated — peak), Q4 2025: 38 (Low — easing), Q2 2026: 47 (Moderate — re-tightening).
OFI sub-scores
Sub-scores arriving Q3 2026
Regional, cohort-level, and denial-divergence breakdowns will publish once HMDA 2024 full dataset is integrated. Currently OFI is a single composite value: 47.
Quarter-by-quarter history
Period OFI Value State Direction Change
Q4 2024 44 MODERATE Baseline
Q2 2025 52 ELEVATED Peak tightening +8
Q4 2025 38 LOW Easing cycle −14
Q2 2026 ← current 47 MODERATE Re-tightening +9
Understanding OFI

What OFI measures

The gap between what federal agencies (FHA, VA, Fannie Mae) require and what lenders actually demand. A borrower can meet agency minimums and still be denied due to lender overlays.

What OFI is not

OFI is not an approval probability, a credit score, or a lender recommendation tool. It is an observational, behavioral, market-based friction indicator.

Sub-scores — Q3 2026

Regional, cohort-level, and denial-divergence breakdowns are planned for Q3 2026, after HMDA 2024 full dataset integration. Until then, OFI is one number.

Update schedule

OFI is published quarterly: Q1 (February), Q2 (May), Q3 (August), Q4 (November). Data sources: CFPB complaint database, HMDA 2024 annual data, LO outcome contributions.

Citation: FinanceRateCalc Research. (2026). Overlay Friction Index (OFI) Q2 2026: 47 — MODERATE, re-tightening. financeratecalc.com/ofi-dashboard.html · Data: overlay-climate.json · License: CC BY 4.0
Disconnect Index — P/R vs OFI Divergence
Market Valuation vs Lender Behavior

Measures whether lenders are too loose or too tight relative to current home valuations. Positive = bubble risk. Negative = opportunity zone.

Bubble Opp. Aligned −16.6 Q2 2026
🟢 OPPORTUNITY ZONE
Lenders are applying more friction than current market valuations justify.
Borrowers who qualify on fundamentals are being denied by overlay, not by market conditions.
+100
2021 peak
Bubble signal
−16.6
Q2 2026
Current
−43.8
2023 peak
Opportunity

Note: Disconnect Index values prior to 2026 are retrospective calculations. "Would have signaled" — not live predictions at the time. Full data →

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