In response to the fallout from the subprime mortgage crisis of 2008 which led to Great Recession, Housing and Economic Recovery Act (HERA) and the American Recovery and Reinvestment Act (ARRA) were enacted.
The Great Recession of 2008, the economic crisis following the burst of the U.S. housing market crash and the financial meltdown, was the most severe economic recession in the United States since the Stock Market crash of 1929.
However, the subprime mortgage crisis that led to recession was the consequence of combined actions by central banks around the world, property owners, lending institutions, insurers, and venture capitalists.
In response to the crisis, US enacted the HERA and ARRA, a significant phase of legislation that permitted the federal housing to guarantee billions of dollar in fixed-rate mortgages for subprime borrowers.
Learn why subprime mortgage crisis in the United States cause other countries to also enter economic downturns here: https://brainly.com/question/13761845
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