The Deterioration of Mortgage Quality Nonprime Mortgage Originations (As a share of total originations) Percent of Nonprime Loans with Low or No Documentation Percent 40 Percent 70 35 60 30 50 25 1 40 20 30 15 20 10 5 10 0 0 1995 1997 1999 2001 2003 2005 2007 2009 Source: Federal Reserve staff estimates, based on data from Inside 2003 2004 2005 2006 2007 Source: Derived from data in Mayer, Pence, and Sherlund "The in Mortaage Defaulte nemalari (a) Why would mortgage originators sell these types of mortgages? (b) Why would investors purchase these types of mortgages? (c) Why would home buyers sign up for these kinds of mortgages