Everyone simply thought “real estate only goes up.” In valuing the mortgage, the credit worthiness of the borrower was secondary to the value of the home, and

Everyone simply thought “real estate only goes up.” In valuing the mortgage, the credit worthiness of the borrower was secondary to the value of the home, and the data still bears out half the story. In rising real estate markets mortgages simply don’t default. Problem is, everyone forgot real estate can go down.