Policy History, Theory, and Methods | Public Affairs, Public Policy and Public Administration

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During the subprime mortgage crisis of the early 2000’s, predatory mortgage lending practices were the leading cause for the housing bubble burst. A surge in unequivocal risk in the favor of mortgage lenders stripped the consumer of their financial abilities as a result of de-regulated lending packages and the packaging of such loans in the secondary market. As the crisis unfolded, policymakers and financial regulators implemented measures to address the issues and prevent a similar catastrophe from occurring in the future. Bank bailouts and other forms of reparations were dispersed over the span of nearly five years to recover from the global incident.