The 2008 financial crisis was caused, in part, by mortgage lenders taking on too much risk. Now, the pendulum has swung so far in the opposite direction that the private sector has all but ceased taking on mortgage risk any more.
Why it matters: Private-sector risk aversion has prevented millions of Americans from buying houses. It is also driving banks out of the mortgage game. That might be OK, if the nonbanks weren't disappearing too, and unlikely to return any time soon.
