what-was-a-significant-negative-effect-of-the-securitization-of-home-loans

Question

What was a significant negative effect of the securitization of home loans?

Accepted Answer

It led to a lack of transparency and understanding of the underlying risks.

Answer

It increased the number of first-time homebuyers.

Answer

It resulted in higher interest rates for all borrowers.

Answer

It reduced the availability of credit in the market.