Over the past year, average loan-to-value ratios and debt-to-income ratios are lower on mortgage originations, as is the accompanying risk.

The inaugural Housing Credit Index, a new measure of loan risk compared to 2001, came in at 48 as of the third quarter of this year.

That turned out to be lower than during the same three-month period last year, indicating that the level of risk on residential loans has fallen.

Source: Mortgage Daily