Subprime mortgages may have never exceeded 7% to 8% of all outstanding mortgage obligations by 2007,but by the end of 2008,they were the source of more than 65% of bankruptcy filings by homeowners in the United States.

Question

Quizplus · Accepted Answer

This statement is true. While subprime mortgages made up a relatively small percentage of all outstanding mortgages in 2007, the high default rates on these loans contributed significantly to the overall increase in bankruptcy filings by homeowners in the US by the end of 2008.

Subprime Mortgages May Have Never Exceeded 7% to 8% of All