Government mortgage insurance plus industry lobbying produced reckless subprime lending.

Evidence

The federal government encourages financial institutions to offer affordable loans to people with limited financial resources and property assets by insuring those loans. However, lobbying by the finance industry resulted in decreased down-payment requirements, weakened underwriting standards for affordability documentation, and emasculated regulatory oversight. … Government-backed guarantees of debts with scant oversight provided fertile ground for reckless risk taking. In the subprime lending crisis, exploitative and predatory lenders sold, with trivial credit documentation, homes that borrowers could not afford (Duca, 2013). — Albert Bandura, Moral Disengagement, 1486

Categorization

• corroborated: 2 independent passages support this claim — Albert Bandura, Moral Disengagement: How People Do Harm…, 1486