All of the following were significant changes in the mortgage market in the 2000s EXCEPT
A) investment banks became significant participants in the secondary mortgage market.
B) lenders loosened lending standards.
C) mortgage-backed securities became more popular with investors.
D) borrowers tended to increase the amount of their down payments.

Question

Quizplus · Accepted Answer

The statement "borrowers tended to increase the amount of their down payments" is not accurate as a significant change in the mortgage market during the 2000s. In fact, the trend during this period was quite the opposite, with lenders loosening lending standards and offering mortgages with lower down payments or even no down payment requirement, which contributed to the housing bubble and ultimately led to the subprime mortgage crisis. The other options listed - investment banks becoming significant participants in the secondary mortgage market and mortgage-backed securities becoming more popular with investors - are examples of significant changes that occurred in the mortgage market during the 2000s due to the innovation and growth of financial products and institutions that facilitated the securitization of mortgages.

All of the Following Were Significant Changes in the Mortgage