Final answer:
Due to subprime loans and changes in bank regulations, lenders frequently lend up to 95 percent on conventional residential mortgages.
Step-by-step explanation:
Lenders frequently lend up to 95 percent on conventional residential mortgages due to the availability of subprime loans and changes in bank regulations. In the past, local banks made home loans and carefully vetted buyers for their ability to repay. However, changes in finance and banking laws allowed lenders to securitize mortgage loans and sell them as bonds, resulting in the separation of the financial interests of lenders from the ability of borrowers to repay. This made highly risky loans more attractive to lenders.