Answer Key

Mortgage – Comprehension Check

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