what is trends in credit availablity?
Answers
Explanation:
Homeownership is often regarded as a foundation to build wealth that has been accessible to most of America’s families. Access to mortgage credit for prudent, responsible loan applicants – in other words, credit availability – is very important to support homeownership in a sustainable and responsible way.
The CoreLogic Housing Credit Index (HCI) was designed to measure the variations in credit availability. The HCI combines housing credit underwriting attributes, such as borrowers’ credit score, debt-to-income ratio (DTI), loan-to-value ratio (LTV), level of documentation, occupancy status and loan origination channel over time, in order to determine the range and variation across multiple attributes and combine them into one single measure. These changes across different dimensions are reflected in the HCI. A rising HCI indicates increasing openness or loosening of credit attributes and a declining HCI indicates decreasing openness or tightening of credit attributes. Since 2001, credit availability has shifted from very loose during the years immediately preceding the Great Recession to very tight after the Great Recession.
[1]
[2]