“60 Minutes” reports mortgage crisis is far from over
CBS News reporter Scott Pelley’s report focuses on a second wave of of defaults in the coming months spurred on by investments with such exotic names as “Alt-A” and “option ARM.”
The first wave of bad news came from sub-prime lending which went to the least credit worthy borrowers and then those mortgages were bundled and sold as investments. The Alt-As and option ARMs lured borrowers in with teaser rates as low as 1 percent. And those rates are beginning to reset now, with the possibility of as much as doubling a borrower’s mortgage.
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