> We have been living in a housing bubble for a while. We all know it, Wells Fargo knew it, and this could be a signal that at least Wells Fargo is concerned th

> We have been living in a housing bubble for a while. We all know it, Wells Fargo knew it, and this could be a signal that at least Wells Fargo is concerned that the bubble might be popping. I really doubt that. Home values are high in urban areas because of high demand and low supply. The buyers are actually qualified and can afford to pay their mortgages. Mortgages are not being handed out like candy like they were in 2008. Right now the situation is kind of the inverse of 2008. In 2008, a recession triggered mass job loss. Today, mass job loss resulting from the virus lockdowns has triggered a recession. No bubble burst. I would bet Wells Fargo is more worried about people who are otherwise creditworthy suddenly being unable to make payments because they lost their jobs, or the government suspending payments. In a situation like this, credit history is not very useful in evaluating risk.