How did deregulation of the mortgage industry in 1999 help produce the housing crisis of 2007 and 2008?

Question

Quizplus · Accepted Answer

Deregulation allowed for the creation of many new mortgage companies, which offered loans to people who could not afford them. This led to the formation of "predatory" lending practices, which contributed greatly to the housing crisis. Many of these new companies also did not have the same regulations and oversight as traditional banks, which added to the problem.

How Did Deregulation of the Mortgage Industry in 1999 Help