What is the 12 Month Treasury Average (MTA) index?


The 12 Month Treasury Average (MTA) index, also known as 12 Month Moving Average Treasury (MAT), is one of the many ARM indexes used for adjustable rate mortgages interest rate adjustment.

It is calculated as the average of the last 12 values of the 1 Year CMT ARM index and as such it is less volatile than the 1 Year CMT. MTA, however, is quicker to change than the 11th District COFI.

The 12 Month Treasury Average (MTA) ARM Index is perhaps the most popular.

MTA, COFI and LIBOR are the most commonly used ARM indexes, and MTA (or MAT) is perhaps the most widely used one for Option ARMs. MTA-indexed mortgage loans are quite popular. MTA and COFI indexes both allow for negative amortization.

LIBOR is the most volatile of the three, and although LIBOR mortgages also sometimes allow for deferred interest, LIBOR loans typically don't have Neg Am option.

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