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Interest deductions were allowed on mortgages for a primary house and an additional residence. These twin factors of the rise in demand and the reduction of risk resulted in the flow of funds in the subprime market.
2) Financial and institutional innovations: The government sponsored enterprises (GSEs) played a significant role in the development of the US mortgage market...
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These twin factors of the rise in demand and the reduction of risk resulted in the flow of funds in the subprime market.
2) Financial and institutional innovations: The government sponsored enterprises (GSEs) played a significant role in the development of the US mortgage market. They started securitizing conventional mortgages and issuing mortgage backed securities...
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