Which of the following was t regarding sub-prime mortgages that were popular in 2005-2006?
A) More than 90% of these loans were made by regulated banks.
B) Bankers expected higher default rates on these loans.
C) They were generally fixed rate loans.
D) all of the above

Question

Quizplus · Accepted Answer

Sub-prime mortgages were loans given to borrowers with poor credit ratings. Bankers expected higher default rates on these loans because the borrowers were high-risk. These loans were not fixed rate loans but rather had adjustable rates that could cause payment shock for borrowers. Only a portion of these loans were made by regulated banks, with the majority being originated by non-bank lenders.

Which of the Following Was T Regarding Sub-Prime Mortgages That