Lending Standards Are Not Like They Were Leading Up to the Crash

Here & rsquo; s an appearance at the information to assist show it. It works like this: When lending standards are less strict, it & rsquo; s easier to get a home loan, and the index (the green line in the graph)is higher. In 2004, the index was around 400. Here & rsquo; s a look at the data to assist prove it. According to their website: & ldquo; The MCAI provides the only standardized quantitative index that is entirely focused on mortgage credit. It works like this: When lending requirements are less strict, it & rsquo; s easier to get a mortgage, and the index (the green line in the graph)is greater. In 2004, the index was around 400. & rdquo; The high peak in the chart above indicates that leading up to the housing crisis, it was much simpler to get credit, and the requirements for getting a loan were far from strict.