ARMs: Going, Going, Half-gone

Here’s the money quote of the day, from the NYT most-forwarded business story of the day (or maybe from Moody’s via the NYT) (link):

From 1994 to 2005, some 3.2 million households were able to buy homes thanks to subprime mortgages or other such loans, according to an analysis by Moody’s Economy.com. About 1.7 million of them will probably lose their homes to foreclosure when all is said and done. More than half of the homeownership gains from subprime mortgages will be erased.

Might be nice for a bit more context here. That is, 3.2 million out of how many mortgages written in the relevant period? Out of how many total mortgages? Still, it sounds like a lot.

The Times goes on to speak of “the newfound conservatism of mortgage lenders, which will make it harder for tomorrow’s buyers to get a mortgage”—and adds: “(Thank goodness.)” Really? If half of all ARMs lose their homes, still the truth is that half of all will keep their homes, and I suspect maybe they would rather get to keep them, even under stress, than to have no mortgage at all.