Here's why this housing market boom is different

Larry Downing/Reuters The US housing market is healthy, but some market participants worry it may be starting to heat up too much. We think that’s a mistake—and an opportunity. That’s because mortgages today have little in common with the risky loans made before the housing crisis. The confusion, in our view, stems from how people assess the credit quality of today’s loans. Before investors and analysts buy a residential mortgage-backed security (RMBS)—or assign a credit rating to one�...