Sure, if the entire economy collapses people will start to default on their loans. What happened in 2005-2008, though, was people defaulting on their loans cau

Sure, if the entire economy collapses people will start to default on their loans. What happened in 2005-2008, though, was people defaulting on their loans caused the economy to collapse. So while a low-risk loan can become higher risk depending on circumstances, classifying an existing high-risk loan as low-risk to improve your bottom line is never a good idea.