[MUSIC] Welcome to Module 3 on Housing and Mortgages. The lessons in this module introduce some key terms about housing and mortgages, key terms that we will see show up many times throughout the course. In the first lesson, we will discuss the relationship between housing bubbles and financial crisis. How housing bubbles have been a common feature of financial crisis in all major economies since World War II. Then in the next three modules we'll go through some definitions about mortgages. First, the difference between fixed and adjustable rate mortgages in lesson two. Then the definition of prime mortgages in lesson three. And then non-prime mortgages in lesson four. Where non-prime mortgages is a super set that includes the famous term of subprime mortgages. In lesson five, we'll turn directly to subprime mortgages. Many people refer to the crisis that we just had as a subprime crisis which is really not accurate. If, to the extent we have something called the subprime crisis, its a subset of the financial crisis. Nevertheless, subprime mortgages play an important role in the crisis and understanding why it might make some sense under some circumstances to actually offer and take out a subprime mortgage is important. And we'll talk about that in lesson five. In lesson six, we turn to the foreclosure crisis, which is part of the housing crisis when people lost their homes because they were unable to pay their mortgages. The foreclosure crisis was widespread throughout the United States, but particularly bad in some regions of the United States, and for some types of mortgages. And we'll present those facts in lesson six. Finally in lesson seven, we'll pull together all these various terms about crisis. Particularly housing crisis, financial crisis, and great recession. And explain how these different terms relate to each other and why they're not exactly the same thing. And then lesson eight will summarize what we've learned in this module. [MUSIC]
