Financial Planning, Housing and Consumer Economics
Discussion questions for this week (respond in Reading Quiz 12):
1.What problems did the foreclosure crisis create for neighborhoods and local municipalities?
• No one wants to move into the neighborhoods with a lot of foreclosures
• People lost trust
• Bad backyard swimming pools were happening in California especially
• Public health impact from bugs, swimming pools
2.What factors contributed to the housing/mortgage crisis? Give examples from the documentary.
• The economy
• September 11
• Retail sales decreasing
• Prices were rising faster than people’s income
• Inexperienced people were getting into the housing business
3.What was the role of the following “players” in the crisis:
-Mortgage loan officers/originators
Include examples from the documentary in your answer.
1. Homebuyers- were buying homes a lot, but once the prices rose they stopped buying. Then eviction
started and houses were being foreclosed. A lot of people tried to refinance their homes as well.
They were not being smart with their money or their housing choices.
2. Mortgage loan officers-dictate everything, have strict rules and thus a lot of people couldn’t have
the ability to have the American dream