The Vintage Quality Index (VQI) started 2016 at 88.7, a value representing restricted underwriting standards relative to our baseline level observed in January 2003, and roughly 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 a period of very tight underwriting standards during and after the housing crisis. The loosening of underwriting standards coming out of the housing crisis has been driven by increased lending to borrowers with a greater than 80% LTV, as well as higher shares 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 – January 2016.

CLICK HERE to download the data set.