Originally Posted by
Bluedriver
That is all very good info. However it's important to acknowledge that the overwhelming majority of mortgages issued since the last housing crisis were issued to borrowers with credit scores and income within the normal standards of qualified buyers. Which greatly lowers the risk of default.
You can acknowledge anything you like. It doesn’t take a majority of mortgages to default in order to bankrupt a MBS, and there’s a lot more bad debt out there than people realize.