Business
Welcome to Capital Markets Today. This month, we are producing a series of podcasts featuring industry experts to discuss the impact of the covid-19 crisis on mortgage origination and distressed mortgage and real estate related assets. Today, we are going to explore the difference between todays COVID-19 based economic collapse versus the 2008 financial and mortgage induced collapse. Many will argue a collapse is a collapse and as a result, we’ll see job loss, mortgage defaults and home value declines.This may be true, but there are 4 major differences today then in 2008. The first is that FHA is a much larger percentage of the mortgage market than in 2008. Second the fed cannot cut rates further unless we go negative Third, any fiscal stimulus will add to an already gigantic deficit. And Fourth, everyone will be dealing with a large healthcare crisis on top of a recession. Joining the podcast to discuss the comparison of the 2008 and 2020 financial crisis is Brad Staley, Managing Member of Pinnacle Rock Capital. Brad is also the author of a white paper title “2008 Subprime Mortgage Crisis vs. the 2020 COVID-19 Economic Collapse.