Final answer:
The SEC did not promote loan modifications for home-loan borrowers; entities like the FHA and programs like the Home Owners' Loan Corporation played vital roles in refinancing mortgages, while the federal government altered bank regulations to make it more feasible for banks to offer home loans.
Step-by-step explanation:
The statement that the SEC promoted loan modifications for troubled home-loan borrowers to keep people in their homes is false. The SEC, or Securities and Exchange Commission, is responsible for regulating the securities markets and protecting investors, not directly involved in home-loan modifications.
Instead, during the financial crisis, entities like the Federal Housing Administration (FHA) and programs such as the Home Owners' Loan Corporation were instrumental in refinancing mortgages and preventing foreclosures.
The federal government also made changes to bank regulations that made it easier and cheaper for banks to make home loans, and this, in conjunction with other measures like the American Restoration and Recovery Act, helped stabilize the housing market and assisted in keeping people in their homes.