The Role of Mortgage Lenders in the Great Recession

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You will have to use APA style. The paper must include list of references ( at least 2-3 sources).

You will have to explain the role mortgage lenders played in 2008-2009 great recession. No introduction needed. Straight to the point, please.

Let me know if you have any questions. The topic is Mortgage Lenders and their role (e.g. Countrywide) in 2008-2009 Great Recession in the USA

you need to choose a particular institution/factor that played a key role in the recent financial crisis. For example, you can write about the reasons for the crisis, the impact of the crisis on financial markets and institutions, the impact on the global economy, the response to the financial crisis (the bailout plan and the effect of it on financial markets), or the aftermath of the crisis.
Answer preview

The Role of Mortgage Lenders in the US’s 2008-2009 Great Recession

The US experienced the worst financial crisis that started in 2008-2009 caused by hedge funds and insurance companies. It created what is referred to as the subprime mortgage crisis. Primarily, according to Berndt, Hollifield, and Sandas (2010), before the Great Recession began to be felt, the mortgage lenders and brokers repackaged loans, which earned them higher profits that led to riskier ex-post. Mortgage lenders are seen as the core of the Great Recession because it created a decline in the house prices, and by 2007, the borrowers were unable to resell their houses. The inability to make profits after reselling their houses led to foreclosure and devaluation. The mortgage investment market had flooded, which resulted in huge losses for the borrowers and mortgage lenders. As a result, the financial markets elapsed because most mortgage lenders had acquired hedge funds that required repayment. It is was one of the leading roles that the mortgage lenders played in the 2008 financial crisis.

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The Role of Mortgage Lenders in the Great Recession