All of the Following Are Behaviorally-Related Sales Objectives Except:
The share of new loans with a down payment of 5 percent or less extended by Freddie Mac and Fannie Mae
A)declined substantially after 1999.
B)rose from 4 percent in 1998 to 12 percent in 2003 and 23 percent in 2007.
C)rose from 4 percent in 1998 to 23 percent in 2002,but declined to less than 10 percent in 2007.
D)never exceeded 10 percent of the new loans financed.
Which of the following was a contributing factor to the housing boom and bust and the financial crisis of 2008?
A)An increase in the share of loans to sub-prime borrowers.
B)An increase in the share of loans extended to borrowers making only a small down payment.
C)An increase in adjustable-rate mortgages (ARMs)as a share of the total.
D)All of the above.
The increase in the share of loans extended to borrowers with little or no down payment contributed to the financial crisis of 2008 because these loans
A)initially depressed housing prices.
B)were extended only to borrowers with prime credit status.
C)had much higher default rates than loans to borrowers making larger down payments.
D)were unavailable to low-income borrowers,who would have profited the most from such loans.
Which of the following contributed to the rising mortgage default and foreclosure rates and the eventual economic crisis of 2008?
A)tightened mortgage lending standards and the reduction of loanable funds during 2001-2005
B)the increase in the greed of Wall Street bankers and other commercial lenders
C)the substantial increase in sub-prime and adjustable rate mortgages as a share of the total during 2001-2006
D)the increase in the household savings rate during the two decades following 1985
E)the increase in fixed rate mortgages as a share of the total during the decade prior to the crisis