Due to the recent 2007 Subprime mortgage financial crisis, Royal Bank of Canada has now eclipsed Morgan Stanley in terms of market valuation.

Subprime mortgages remained below 10% of all mortgage originations until 2004, when they spiked to nearly 20% and remained there through the 2005-2006 peak of the United States housing bubble.

Subprime mortgages offered home loans to borrowers who posed a high credit risk.

It was also a contributory factor in the 2007 Subprime mortgage financial crisis.

Consumer watchdog groups such as American Consumer Credit Education Support Services argue that while Cardit's services may give some people added flexibility when making their mortgage payments, the service is just as likely to get many panicked consumers even deeper in debt, especially given the 2007 Subprime mortgage financial crisis.

The impact of the 2007 Subprime mortgage financial crisis brought doubts on the viability of the BCDH design.

Lenders began to offer loans to higher-risk borrowers, Subprime mortgages amounted to $600 billion (20%) by 2006.

February-ongoing: 2007 Subprime mortgage financial crisis Subprime industry collapse; more than 25 subprime lenders declaring bankruptcy, announcing significant losses, or putting themselves up for sale.