Bad News for Mortgage Industry
This Reuters's news story is about the continuing profit losses in the subprime mortgage industries. Subprime mortgages are home loans given to customers with bad credit and partialy disclosed income statements. The result is that borrowers are charged with prohibitive interest rates compare with their counterparts who get low interest rate because they have excellent credit credit. These prohibitive interests, in recent months caused many homes to be foreclosed by lenders due to non-payments.
The story was focused on American Home, the latest financial institution to losses. There were opportunities for attribution in the third and fourth paragraph when he said that home loans to borrowers with poor credit histories may be spreading to higher-quality loans; he needed to mention the source when he said that American Home specializes in prime and near-prime loans and makes roughly 2.5 percent of all U.S. mortgages.
The first quote in this suggested that the writer did not talked to the soure. Was this an email interview? clarity was compromised here. There was no quotes from those impacted. It waould have been good to hear from subprime mortgage borrowers. On the plus side, the story was well researched with appropriate links attached for further information for those interested in the current trends in the housing markts. read it at:
The same story in the online Forbes magazine was much harder to understand. Clearly it was directed at a much more sophiscated audience.
The first problem with version is the found in the lead. The word "securitized" could be subtituted for a much simpler word. in the second paragraph another tumbled could simply be replaced for fell. "Analyst polled", "secondary securitization," where some the words and phrases that could make ordinary reader stop.
Like the first version, there was no input from the affected audience or its leadership. In this sense, the principles of fairness and balanced reporting were ignored. Read the Forbes article at: