4 ms·
It has always annoyed me that the financial services industry attempts to referred to mortgages, loans and other financial instruments as "products". By defini
by deweywsu 5y ago
It has always annoyed me that the financial services industry attempts to referred to mortgages, loans and other financial instruments as "products". By definition, they are services. The many papers you get when signing a mortgage is about the closest thing you could refer to as a "product".
I think they do this to attempt to create a sense of finality and inflexibility in what they are selling. "It's a product" makes it seem like a fixed thing that cannot be changed, when in fact, it definitely can be.
- namdnay 5y agoIt’s a service for you the consumer, but those loans are packaged and sold as investment products
- Hamuko 5y agoThe Big Short (great movie) had a good scene on the productization of mortgages. https://www.youtube.com/watch?v=xbiDrzTd8fE https://www.youtube.com/watch?v=xbiDrzTd8fE
- philomath_mn 5y agoI work at a structured credit manager. I'm not sure how much the semantics matter, but from our perspective, a mortgage (or other loan) is an asset that we can buy with a certain yield and risk profile. This an abstraction to be sure, but the way we use mortgages makes them more of a product. (we don't do much in the RMBS area specifically)