Bunuel
Companies, which are paid by the government to collect payments for the program’s mortgages and to guide borrowers through the process are eager to see the administration repeal the homeowner protection statute, which has minimized those companies’ leverage in cases of borrower default.
A) Companies, which are paid
B) Companies that are paid
C) Companies are paid
D) Companies, having been paid
E) Companies, paid
VERITAS PREP OFFICIAL EXPLANATION:
A key to solving this problem, as with most Sentence Correction problems, is identifying your Decision Points. Note that three answer choices (A, D, and E) include commas after "companies," setting up modifiers set off by commas. And as you scan the rest of the sentence you should see that there is no logical ending comma to separate that modifier. The only remaining comma in the sentence comes before "which" - beginning a modifier of its own. If you were to lift out the portion between the commas, you would have "Companies...has minimized those companies' leverage..." which is clearly wrong.
Furthermore, even if there were a closing comma before "are paid," this modifier wouldn't really make sense as an unnecessary modifier -- after all, it is really only "those companies" (as the sentence later specifies) and not all companies, that would object to the statute.
Notice, also, the presence of the verb phrase "are eager to see" toward the middle of the sentence. This should help you eliminate choice C: if the beginning of the sentence were "Companies are paid..." then you would need an "and" before "are eager to see ."
The correct answer is B, and the context of the rest of the sentence should seal that deal for you. "that are paid..." tells you which companies are eager to see the statute repealed, and also serves as a logical antecedent for "those companies' leverage" later in the sentence. Which companies? Those that are paid to collect payments and guide borrowers.