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The 2008 Financial Crisis Explained

Civics 101

00:00

Mortgage Lenders Don't Underwrite Mortgages

In the early 2000s, lenders essentially eliminated the typical requirements for some borrowers. They would also say, maybe you don't need a down payment. These were called liars loans or they were interest only. The reason that lenders could do this is because they sold those loans to Wall Street companies and investment banks.

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