Monday, March 6, 2017

The role of mortgages in the financial crisis?

Which of the following is a change in mortgage lending standards that contributed to a rise in defaults after the housing bubble collapsed?

An increase in the multiple by which a borrower s monthly income had to exceed the borrower s monthly mortgage payment

A decrease in the percentage of the value of the house required as a down payment

An increase in the credit rating that lenders required of borrowers

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