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

Here & rsquo; s a look at the information to help prove it. It works like this: When providing standards are less strict, it & rsquo; s much easier to get a home mortgage, 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 help show it. According to their website: & ldquo; The MCAI supplies 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 simpler to get a mortgage, and the index (the green line in the graph)is higher. In 2004, the index was around 400. & rdquo; The high peak in the graph above suggests 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.