
Ultimate access to all questions.
A risk consultant is giving a presentation to a group of analysts on the topic of subprime mortgages and how they contributed to the 2007–2009 financial crisis. The consultant begins the presentation by providing an introductory overview describing the mechanics of subprime mortgages as well as some subprime market trends that occurred in the years leading up to the crisis. Which of the following statements would be correct for the risk consultant to include in the presentation?