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.

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Definitions:

Product Prices

The amount of money required to purchase a product, influenced by cost of production, supply, demand, and market competition.

Minimum Standard

The lowest level of quality, performance, or subsistence considered acceptable by regulatory bodies or society.

Income Inequality

The unequal distribution of income among individuals or households within a population.

Goods And Services

The physical items (goods) and activities or benefits (services) that fulfill consumer needs and wants.