Another blow to the market!

[Will G.]

4th largest mortgage lender putting the brakes on new loans, nothing to see here!

https://www.reuters.com/article/us-jp-morgan-mortgages-credit-exclusive-idUSKCN21T0VU

[Mike Dymski]

Lenders are subject to "adverse selection" at the dawn of of recessions.  Conservative borrowers tighten up and don't borrow + aggressive or desperate borrowers need cash = adverse selection.  In addition, credit scores and metrics may be misleading because they don't reflect real time what is happening with borrowers' credit...particularly, in periods with payment deferrals and suspension of credit reporting.  Lastly, many lenders have capital and liquidity challenges of their that they are dealing with.