After new HUD guidelines were issued in 1999, Freddie Mac and Fannie Mae
A) extended fewer loans to borrowers making a down payment of 5 percent or less.
B) extended more loans to borrowers making a down payment of 5 percent or less.
C) extended new loans only to borrowers making a down payment of at least 20 percent.
D) refused to extend new loans without full verification that the borrower had prime credit status.

Question

Quizplus · Accepted Answer

The new HUD guidelines encouraged Freddie Mac and Fannie Mae to extend more loans to low and moderate-income borrowers, which often included those making smaller down payments.

After New HUD Guidelines Were Issued in 1999, Freddie Mac