Forecasts of a possible recession sometime in 2023 tend to evoke memories of the last, previous downturn, the Great Recession of 2008-2009. One of the major driving forces of that recession was the subprime mortgage crisis, with massive numbers of mortgage foreclosures.
However, even if the U.S. economy goes into recession later this year, real estate industry stakeholders and market experts say they do not expect another mortgage crisis to develop.
“A lot has changed in the mortgage landscape since the Great Recession. If people are worried about whether (a home mortgage crisis) is going to happen again, they should evaluate the key differences,” said Keenan Raverty, head of Minnesota mortgage production for Bell Bank Mortgage, the largest first mortgage loan originator in Minnesota. Raverty also chairs the Government Affairs Committee for the Minnesota Mortgage Association and served as president and board chair of the MMA at the front-end of the Great Recession.
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