What happened to the credit standards (e.g., minimum down payment, mortgage loan relative to the value of the house, and creditworthiness of the borrower) between 1995 and 2005? Why did the credit standards change? How did this influence the housing price bubble and later the default and foreclosure rates?

*3. If owners have little or no equity in their houses, how will this influence the likelihood that they will default on their mortgage? Why?