^^^ First time you got something correct. So full credit to you.
It was NOT that poorer people got access to loans, that was the ultimate cause.
It was the myriad of completely fraudulent loans (NINJA loans, etc) that were written in astounding numbers and the system turned a blind eye too because home values were going up so fast and predictably that the lack of income or other factors was papered over by the ability to refinance later.
As soon as the market went into a downturn (a predictably eventuality) all of those fraudulent loans at the bottom of the stack defaulted.
That then causes a glut of homes in poorer neighbourhoods to be foreclosed upon, and sold off at fire sale rates, destroying the equity in the tranche of homes just above that, of the poorer BUT PAYING people, who then see a bunch of foreclosures as interest rates spike and their home equity collapses.
And so on and so on, until you get to the more wealthy tier of home owners who have significant equity cushions in their homes to withstand the swing.
BUt it is the first domino that triggers this which is all the FRAUDELENT loans in the system, not poorer people getting access to loans under Dodd Frank, that they were paying.
