Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by ameister14 on Tuesday March 21, 2023 @11:16AM
(#35247435)
Sure, if the entire economy collapses people will start to default on their loans.
What happened in 2005-2008, though, was people defaulting on their loans caused the economy to collapse.
So while a low-risk loan can become higher risk depending on circumstances, classifying an existing high-risk loan as low-risk to improve your bottom line is never a good idea.
What happened in 2005-2008, though, was people defaulting on their loans caused the economy to collapse.
So while a low-risk loan can become higher risk depending on circumstances, classifying an existing high-risk loan as low-risk to improve your bottom line is never a good idea.