That's not exactly true but, just so you have something educated to say this weekend when you and your friends are hanging out around the barbecue, here's some talking points about the subprime lending issue:

* Based on projections made by Christopher Cagan, director of research and analytics for First American CoreLogic, about one third of all borrowers who mortgaged their home the last couple years (2004-2006) with an adjustable rate mortgage with an initial rate of 4% or less will lose their homes to foreclosure.

* The net losses for these foreclosure only represent about 1% of the total U.S. mortgage debt.

* 2008 will likely be the worst year; fallout will continue for six or seven years after that.

(The study is based on zero growth in home values. If values go up, foreclosures will go down. The opposite is true as well.)

The somewhat funny part of the article I just read is this:

Nearly one quarter of all ARMs originated in 2006 have zero equity! I hear all the time how people are "losing" their homes.

To have zero equity likely means the borrower never invested any money at down payment, or cashed out their equity in a refinance.

Nothing ventured, nothing gained. And, nothing lost, apparently.

Source: The impact of ARM resets - By Todd Carpenter, Lenderama, by way of Inman News blog