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Which statements belong in the summary? Check all that apply. Investors across the globe w ...
Which statements belong in the summary? Check all that apply. Investors across the globe were buying mortgage-backed securities for the rate of return that these securities were generating. Most of these investors chose to be ignorant of the risks involved in such investments. Borrowers who met certain requirements for mortgages, such as minimum income level relative to the total mortgage amount, could obtain mortgages that were qualified to be securitized. Such mortgages were called subprime, or Alt-A, mortgages. Mortgage payments based on short-term interest rates-called adjustable-rate mortgages (ARMs)-were preferred by subprime borrowers. In the 2000 s, specialized mortgage brokers were allowed to originate mortgage loans. Earlier mortgage loan originators were Savings \& Loan associations (S\&Ls) or banks. Factors that caused the financial crisis