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Which of the Following Best Characterizes the Federal Government's Response

Question 9

Multiple Choice

Which of the following best characterizes the federal government's response to the subprime scandal?


A) A new federal agency was created to regulate mortgage companies, similar to the regulation of banks and savings and loan associations.
B) The Office of Federal Housing Enterprise Oversight, which monitors Fannie Mae and Freddie Mac, created standards for oversight of mortgage companies.
C) The regulatory agencies did nothing until 2007 when Congress began to investigate the Mortgage Bankers Association.
D) The Home Owners' Loan Corporation, first developed in the 1930's, was re-established to assist low- income Americans with home ownership and prevention of foreclosure.

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