Mortgage Products Evolution Since the Great Divide

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In 2008, the financial landscape was marred by B-class and C-class mortgage products, reminiscent of scenes from "The Big Short."

Chaz Guinn and Bob Repass highlight a significant yet often overlooked detail: the strategic defaults on non-owner-occupied properties, which played a crucial role in the crisis.

The term "underwater" was prevalent during this period, describing properties worth less than the owed mortgage amount—starkly different from our post-COVID market. A prime example was the emergence of "underwater" products, where a $100,000 home’s balance gradually inflated to $150,000 or even $200,000.

Fast forward to today, and we’ve come a long way in 15 years. Join us as we explore how the tables have turned and what lessons we’ve learned on Passing Notes!


#Mortgageproducts #Strategicdefaults #Nonownerproperties #Underwaterproperty #Housingmarket #Loanbalance