Answer Key
Mortgage – Comprehension Check
- When home prices skyrocketed, many homeowners [took out a second mortgage]
- People with bad credit history [could qualify for a mortgage too]
- When the crisis began, most people with more home than they could afford [stopped paying the banks]
- Panic increased when [when many bank instituions began to fail]
- One of the few options homeowners had after the crisis started was [to renegotioate the loan with the bank]
- What helped make the mortgage crisis really serious was [fraud]
- When the mortgage crisis heated up, banks [began to be very careful about lending to each other]
- Financial institutions [brought about the crisis through issuing questionable mortages]
- The trouble was that many mortgage applications [were not checked if they had the right data]
- In the early 2000s, the interest rates were [low]