As I said, they might still be falling which means higher risk...

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    As I said, they might still be falling which means higher risk than when they were rising.
    Not that hard to grasp.

    Economy may have been flying along before and then a material change occurred in the economy causing price drops and implying that it will now be struggling for an extended period. Sounds like higher risk to me.

    Risk is calculated at the time the loan is made not in hindsight.
 
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