Click To See Today's Rates

Posted 07/26/2007


Unless You Watch CNBC During Your Lunch Break, You Missed A Must-Watch Video

Earlier this month, CNBC featured a segment on how sub-prime mortgages work.  The shame of it, though, is that it aired at a time when the probable audience was already well-versed on the topic.

This would be like holding a seminar on how to throw a baseball to the attendees of the Baseball Hall of Fame induction ceremonies this weekend.  Chances are pretty good they already know how.

The folks that really needed to see this clip are the average homeowners of America.

In 4-minutes-and-18-seconds, CNBC very clearly explains how losses in the sub-prime market are beginning to trickle up to into "prime" market.  And this aired before some major, major fireworks.

Since the original air date, the following "bad things" have happened:

  • United Capital Asset Management incurs $500 million in sub-prime losses (July 3)
  • Braddock Financial incurs $100 million in sub-prime losses (July 5)
  • Bear Stearns funds incur $1.5 billion in sub-prime losses (July 18)
  • Basis Capital Funds Management incurs "steep" sub-prime losses (July 20)

Big numbers, folks, and they are creating a larger fear about United States mortgage-backed debt on the whole.  Previously contained, the fear is now creeping out of sub-prime and into the 'tweener Alt-A market.

If sub-prime and Alt-A loans keep throwing off losses of this magnitude, investors around the world will eventually stop buying the "Triple AAA"-rated stuff described in the video, too.

Watch the clip.  It's only four minutes long.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

3 Testimonials

Deborah C. Television Crewer

The Mortgage Reports is part of my morning routine. As I read, I learn more, and have come to understand the mortgage industry. I can't thank you enough!

Felicia M. Law Enforcement

The Mortgage Reports has been a valuable asset to me. I love that each topic is fully explained in terms that can be easily understood. I've learned more from this web site than from any first-time buyer education class.

Thomas D. Software Developer

As a first time home buyer, The Mortgage Reports has been the only voice that I can trust, and the expertise has been helpful.

2017 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)