Check all that apply. Mortgage payments based on short-term interest rates-called adjustable-rate mortgages (ARMS)-were preferred by subprime borrowers. The total amount of risk embedded in the securities created by bundling mortgages did not change. The securitization and resecuritization processes led to a distribution of total risk among different types of collateralized securities. Securitizing companies, such as Merrill Lynch, Bear Stearns, and Lehman Brothers, were making money on the volumes of mortgage pools that they were securitizing. This encouraged originators to issue more mortgages and increase the total value of the mortgages. Mortgages were accessible for borrowers who did not meet income and minimum down payment requirements. Moreover, the Fed kept interest rates really low to prevent a recession. This led to a decrease in the demand for homes and a further decline in housing prices. Factors that caused the financial crisis Analysts and theorists have debated over the different factors that caused the subprime mortgage meltdown. According to your understanding of the crisis, which of the following factors led to the financial crisis? Check all that apply. Regulations were relaxed, leading to non-qualifying mortoages getting approved for loans. Credit default swaps daimed to insure CDOs. The Fed kept interest rates low to encourape home ownership. Investors were fully aware of the risks involved, vet still settled with low returns. kall that apply. Mortgage payments based on short-term interest rates-called adjustable-rate mortgages (ARMS) - were preferred by subprime borrowers. The total amount of risk embedded in the securities created by bundling mortgages did not change. The securitization and resecuritization processes led to a distribution of total risk among different types of coliateralized securities. Securitizing companies, such as Merrill Lynch, Bear Stearns, and Lehman Brothers, were making money on the volumes of mortgage pools that they were securitizing. This encouraged originators to issue more mortgages and increase the total value of the mortgages. Mortgages were accessible for borrowers who did not meet income and minimum down payment requirements. Moreover, the Fed kept Interest rates really fow to prevent a recession. This led to a decrease in the demand for homes and a further decline in housing prices. actors that caused the financial crisis Analysts and theorists have debated over the different factors that caused the subprime mortpape meltdown. Accordino to your understanding of the wisis. Which of the following factors led to the financial crisis? check all that apply. Regulations were relaxed, feading to non-qualifying mortgages getting approved for loans. Credit default swaps daimed to insure CDOs. The fed kept interest rates low to encourage home ownership. I Investors were fully aware of the risks involved, yet stili settled with low returns