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

A) It drove housing prices down by preventing too many qualified people from obtaining the mortgages needed to purchase homes.
B) It allowed many new mortgage companies to form,offering "predatory" loans that people could not afford to repay.
C) It made foreclosures almost impossible under the law and allowed many people to stop paying their mortgages with no monetary penalties.
D) It eliminated most mortgage companies and forced potential homeowners to pay cash for their homes.

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Jonathon Mavec · Accepted Answer

Final Answer : B, Explanation :  Deregulation allowed many new mortgage companies to form, and some of these companies offered predatory loans with low introductory rates that later reset to much higher rates, leading to many people defaulting on their mortgages and causing the housing crisis.

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