Credit Scores on Newly Originated Mortgages from 1996

Fed Chairman Bernanke included this chart in his submission to Congress today. It showed an improvement in the credit quality of mortgage borrowers (90th to 10th percentile).  That means 10% were below the bottom of the indicated range.  Could that still be enough to be a future problem?  Too bad, he did not provide the extremes, or the 95th and 5th percentiles — something to give a bit more comfort.

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