How Did Deregulation of the Mortgage Industry in 1999 Help

question 88

Multiple Choice

How did deregulation of the mortgage industry in 1999 help produce the housing crisis of 2007 and 2008?

• A) It drove housing prices down by preventing too many qualified people from obtaining the mortgages needed to purchase homes.
• B) It allowed many new mortgage companies to form, offering "predatory" loans that people could not afford to repay.
• C) It made foreclosures almost impossible under the law and allowed many people to stop paying their mortgages with no monetary penalties.
• D) It eliminated most mortgage companies and forced potential homeowners to pay cash for their homes.
• E) It increased property taxes to the point that many homeowners were forced to sell their homes.

---

Definitions:

DoS Attack

Short for Denial of Service attack, it is a malicious attempt to disrupt the normal functioning of a targeted server, service, or network by overwhelming it with a flood of Internet traffic.

Company Server

A powerful computer or device on a network that manages network resources and stores data central to the operations of a business.

Home Network

A private network within a residence, connecting various digital devices, allowing them to communicate and share resources with each other.

Functioning Network

A connected group of devices that can communicate and share resources with each other effectively.