How the American Mortgage Machine Works
A lot has to happen to make 30-year mortgages at super-low interest rates possible. Investors should understand what each player in the process does, and what risks they take. By Updated Jan. 3, 2021 1:22 pm ET
Every family needs a home, and so do the many risks created by the 30-year mortgage that is standard in America.
Finding an investor to take each of those risks is a job of the Rube Goldberg contraption that is the U.S. housing-finance industry. Investors who don’t understand how it all fits together might one day find themselves scrambling for shelter.