VOA慢速英语 2007 0316a

This is the VOA Special English Economics Report.

Financial markets had a rough week again as investors¹ grew more concerned about the United States housing market. Much of the concern is about home loans to people with poor credit or little history of borrowing money.

Most homebuyers are considered "prime," or a high-quality credit risk. Yet lenders have taken the risk of subprime loans because those buyers pay higher interest rates.

The number and complexity² of nontraditional home loans grew along with the housing market. Now, that market has cooled. At the same time, many buyers, and not just in the subprime market, are seeing their monthly payments go up. Nontraditional loans often start with low payments for the first year or two.

The Mortgage Bankers Association reported this week on the condition of eighty percent of home loans nationally. It says five percent of all mortgage payments were at least thirty days late in the final three months of last year. But more than thirteen percent of all subprime loans had late payments -- the highest level in four years.

By the end of last year, fourteen percent of all home loans were subprime. Total mortgage debt in the United States was ten trillion dollars.

Some experts worry that the problems could affect the wider economy. Congress may act to control risky³ lending. And Senate Banking⁴ Committee Chairman Christopher Dodd says federal aid may be needed to protect buyers.

If a buyer misses too many payments, a lender may try to reclaim⁵ the house through a forced sale. Nationally, foreclosure rates increased in the fourth quarter, but especially among subprime loans.

A number of lenders have already failed or left the business. Yet some may be able to escape losses by passing their risk to others. Many lenders sell their mortgages to investment banks. The banks resell the loans, creating trillions of dollars in mortgage-backed securities. These are bought and sold on financial markets. But some of these investments can be very risky if homeowners cannot repay their loans.

Subprime loans are only part of the story, however. House prices have been slower to rise, and in some places have dropped. Housing expert James Diffley of Global Insights says prices for existing homes in California could drop sixteen percent this year. He says other states including Arizona, Hawaii, Florida and Massachusetts could have large declines as well.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

1 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

2 complexity   

n.复杂(性)，复杂的事物

参考例句：

• Only now did he understand the full complexity of the problem.直到现在他才明白这一问题的全部复杂性。
• The complexity of the road map puzzled me.错综复杂的公路图把我搞糊涂了。

3 risky   

adj.有风险的，冒险的

参考例句：

• It may be risky but we will chance it anyhow.这可能有危险，但我们无论如何要冒一冒险。
• He is well aware how risky this investment is.他心里对这项投资的风险十分清楚。

4 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

5 reclaim   

v.要求归还，收回；开垦

参考例句：

• I have tried to reclaim my money without success.我没能把钱取回来。
• You must present this ticket when you reclaim your luggage.当你要取回行李时，必须出示这张票子。