Fannie Mae to Drop Minimum Credit Score for Homebuyers

[Totally Tunsie]

8. Unfortunately, we all pay when these mortgages go into default

because the banks gave them out to those who could not afford to repay the loans.

History does repeat itself, specifically the Sub-Prime Mortgage Crisis, 2007-2010.

https://www.google.com/search?
q=What+year+was+the+subprime+mortgage%3F&sca_esv=77dc914585b7f4b2&source=hp&ei=-YQTacDuOP-_kPIPn7vskQk&iflsig=AOw8s4IAAAAAaROTCdyDT5akFrwz94mQKbWqeBSuiFds&oq=&gs_lp=Egdnd3Mtd2l6IgBIAFAAWABwAHgAkAEAmAEAoAEAqgEAuAESyAEA-AEGmAIAoAIAmAMAkg

The "subprime mortgage crisis" is the term for a period that began in 2007, characterized by the sharp increase in high-risk mortgages going into default, which contributed to the Great Recession that lasted through 2009. However, subprime lending and the expansion of risky mortgages were growing throughout the 2000s.

Peak of the crisis: The crisis was most intense from 2007 to 2009, with 2007 being the year the major defaults began, according to Investopedia and the Government Accountability Office (GAO).

Underlying causes: The problem was fueled by an expansion of subprime lending in the years leading up to 2007. This included a significant increase in the origination of risky mortgage products like "exotic ARMs" from 2004 to 2006, notes American Predatory Lending.

Related events: The crisis continued to affect the economy, leading to a recession that lasted until mid-2009 and prompting government interventions in 2008, as detailed by the Federal Reserve History and Wikipedia.