3. Can a bank resell your mortgage loan to another entity? Yes or No? 4. What is meant by “credit” as it relates to a mortgage loan?
5. What are two factors that will make it difficult for someone to get a mortgage?
6. What does it mean to “invest?”
7. Why did investors in the U. S. and abroad start investing their money into the U. S. housing market?
8. What is an “interest rate?”
9. What is a U. S. Treasury bond?
10. What are mortgage-backed securities and why did investors invest in these instead of buying up individual mortgages?
11. What does the term “securitize” mean?
12. What does a “AAA” rating mean?
13. According to the video, mortgage debt is a bad investment? True or False?
14. Banks began offering mortgages to people with poor credit histories. This is called a mortgage.
15. How is predatory lending described in the video?
16. What is meant by an “adjustable rate mortgage” and HOW does this benefit the borrower?
17. Why did investors trust collateralized debt obligations?
18. Relaxed lending requirements and low interest rates drove housing prices , which made mortgage backed securities seem like an even better investment.
19. In terms of finance, what is a “bubble?
20. What happened to the bubble when people could not keep up with their skyrocketing mortgage payments?
21. When borrowers could not keep making their mortgage payments, what happened to their houses?
22. Because of this bursting bubble, housing supply was up, demand was and home prices started .
23. Once the above happened, some borrowers had a mortgage that was far less than what their homes were worth. True or False?
24. As a result of this bubble burst, big financial institutions stopped buying mortgages and lenders were getting stuck with bad loans.
25. By 2007, big lenders had to declare .
26. What does the term bankruptcy mean?
27. Credit default was another huge problem! What is a credit default swap?
28. Did the government have to bailout some banks? Yes or No.