Critics of securitization leading up to the housing crisis argue that banks often:
A) failed to properly research their borrowers.
B) offered interest rates that were too high.
C) didn't retain enough loans in-house.
D) sold the securitized assets to sovereign wealth funds.

Question

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Critics argue that banks failed to properly research their borrowers, leading to the approval of loans for individuals who were not creditworthy, contributing to the housing crisis.

Critics of Securitization Leading Up to the Housing Crisis Argue