Asked by Megan McDermott on Jun 03, 2024
Verified
The emergence of the subprime mortgage market following the recession of 2001 made it increasingly difficult for low-income individuals to obtain a mortgage.
Subprime Mortgage Market
A segment of the mortgage market that caters to individuals with poor credit histories who are considered higher risk borrowers.
Low-income Individuals
persons or groups with earnings significantly below the median level of income for their society or geographic area.
- Understand the repercussions of financial instruments and regulatory shifts on the functionality of banks and the economic landscape.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
False
Explanation :
The emergence of the subprime mortgage market actually made it easier for low-income individuals to obtain a mortgage, albeit at higher interest rates and with greater risks. It was the collapse of the subprime market in 2007-2008 that ultimately led to a tightening of credit and difficulty in obtaining mortgages for all borrowers, including those with lower income.
Learning Objectives
- Understand the repercussions of financial instruments and regulatory shifts on the functionality of banks and the economic landscape.
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