the decisive thing was what happened in early 2004 when interest rates had reached rock bottom, the refinancing boom had run its course and the GSEs were stopped in their tracks. With the pipeline ready and waiting, it was at this point that the private mortgage industry took over. Leaving behind the GSE-centered model of the 1990s, they deprioritized conforming mortgages in favor of private label “unconventional” lending—subprime, slightly better Alt-A and oversized jumbo loans.
