The Vintage Quality Index (VQI) ended 2015 at about the same level it started, 89.4, a value representing restricted underwriting standards relative to our baseline level observed in January 2003 and 40% below its peak of 139.10, observed in January 2007. Since the end of 2013, the Index has remained relatively flat, fluctuating in the mid- to high-80s, after rising from lows in the 60s during the period of very tight underwriting standards during and after the housing crisis. Underwriting loosening coming out of the housing crisis has been driven by increased lending to borrowers with a greater than 80% LTV as well as a higher share of investor and high DTI loans. Lending to borrowers with FICO scores less than 660 remains well below historical highs (11% in November compared to 29% from 2007).
CLICK HERE to read more about the RiskSpan VQI – December 2015.
CLICK HERE to download the data set.