So the question is: How can the market re-emerge with enough flexibility to allow more families to achieve homeownership in a responsible way, while avoiding the mistakes of the recent past? Achieving credit quality and availability Some would argue that most of the really risky behavior is now out of the market.
But, unfortunately, the backlash has restricted a lot of perfectly responsible lending as well. Banks are reluctant to put any but the lowest possible risk loans in their portfolios. And the market for new private mortgage loan securitizations is essentially closed. Thus, borrowers face tight underwriting requirements, even if their own risk profile looks relatively “safe” by historical standards.