Why was it so easy for non-credit worthy people to qualify for a mortgage loan, either a new loan or a refinancing of a previous loan, in the 1990s and early 2000s? O Banks were obligated to lend money to low-income people as mandated by the Community Reinvestment Act of 1977 and 1999. O In 2004 the Housing and Urban Development Agency (HUD) of the federal govermment mandated that Fannie Mae and Freddie Mac purchase X amount of sub-prime loans from banks. O The deregulation policies of the 1990s gave many financial firms a free hand in dealing with mortgage buyers. O All of the above.

Why was it so easy for non-credit worthy people to qualify for a mortgage loan, either a new loan or a refinancing of a previous loan, in the 1990s and early 2000s? O Banks were obligated to lend money to low-income people as mandated by the Community Reinvestment Act of 1977 and 1999. O In 2004 the Housing and Urban Development Agency (HUD) of the federal govermment mandated that Fannie Mae and Freddie Mac purchase X amount of sub-prime loans from banks. O The deregulation policies of the 1990s gave many financial firms a free hand in dealing with mortgage buyers. O All of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Why was it so easy for non-credit worthy people to qualify for a mortgage loan, either a new loan or a
refinancing of a previous loan, in the 1990s and early 2000s?
O Banks were obligated to lend money to low-income people as mandated by the Community Reinvestment Act of 1977
and 1999.
O In 2004 the Housing and Urban Development Agency (HUD) of the federal government mandated that Fannie Mae and
Freddie Mac purchase X amount of sub-prime loans from banks.
O The deregulation policies of the 1990s gave many financial firms a free hand in dealing with mortgage buyers.
O All of the above.

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