Keeping it Simple with Simplify Asset Management Keeping it Simple | Ep. 49: Sins of Commission — Did We Create a Subprime Crisis?
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Jun 9, 2025 
Join mortgage credit specialist John Comiskey, an attorney and engineer with 20 years in lending software, as he reveals the concealed truths behind credit reporting and the mortgage landscape. He discusses the expiration of COVID-era programs, risks resembling a subprime crisis, and the challenges of FHA policies on housing equity. Comiskey also emphasizes the importance of stable housing for success and critiques current governmental funding priorities. Don't miss the insights on navigating rising student loan repayments and their impact on consumer spending!
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Pandemic Policies Masked Credit Risk
- Pandemic policies suspended student loan payments and credit reporting, creating an illusion of strong consumer credit quality.
- As these programs end, the true financial stress and delinquencies are now surfacing, resembling a subprime crisis.
Govt Holding FHA/VA Loan Risks
- Though FHA and VA loan defaults rise, the government holds most mortgage risk, reducing systemic banking risk.
- However, increased foreclosures could depress home prices and consumer credit access, impacting the broader economy.
Loss Mitigation Changes Heighten Risks
- Forced sales from FHA/VA loan defaults may increase housing inventory and depress prices, hurting household balance sheets.
- New loss mitigation policies remove payment relief, worsening mortgage borrower distress and risking a surge in defaults.