Mortgage Bankers Association - "Mortgage Applications Surge In Latest MBA Weekly Survey" (12-5-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 30, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 791.8, an increase of 22.5 percent on a seasonally adjusted basis from 646.3 one week earlier. On an unadjusted basis, the Index increased 51.5 percent compared with the previous week-which was a shortened week due to the Thanksgiving holiday-and was up 24.2 percent compared with the same week one year earlier. The changes calculated above are based on revised numbers for the previous reporting period."

NAHB - "Remodeling Activity Rises Slightly In Third Quarter" (12-5-07)

"Remodeling activity held up well during the third quarter of 2007, according to the National Association of Home Builder’s (NAHB) Remodeling Market Index (RMI). The current market conditions indicator increased slightly to 46.2 from 44.8 in the second quarter. And the future expectations measure comes in at 43.3, down just slightly from 44.6. Comparisons to third quarter 2006 (current market conditions: 47.8; future expectations: 45.4) show only a slight decline."

Bloomberg - "Fed May Couple Cut With Measures to Increase Credit" (12-5-07)

"Federal Reserve officials, who are forecast to lower their main interest rate next week, are signaling that they are looking for additional ways to increase credit to companies and consumers. The Fed may lower the discount rate -- what it charges banks for short-term direct loans -- by a quarter-point more than the benchmark rate after Vice Chairman Donald Kohn and San Francisco Fed President Janet Yellen publicly expressed frustration that previous rate cuts haven't encouraged banks to lend to one another."

Bloomberg - "Orange County Funds Hold SIV Debt on Moody's Review" (12-5-07)

"Orange County, California, the wealthiest U.S. municipality ever to declare bankrupcty, bought structured investment vehicles similar to those that caused a run on funds invested by local governments in Florida. Twenty percent, or $460 million, of the county's $2.3 billion Extended Fund is invested in so-called SIVs that may face credit-rating cuts, said Treasurer Chriss Street. In all of its funds, the county holds a total of $837 million of SIV debt, including $152 million in its $3.5 billion of money-market funds that isn't under ratings review, said his spokesman, Keith Rodenhuis."

Bloomberg - "Merrill May Write Down $4.5 Billion More, Citi Says" (12-5-07)

"Merrill Lynch & Co. may report an additional writedown of $4.5 billion because of mortgage-related losses, said Citi Investment Research, which also cut its profit forecasts for three of the four biggest U.S. securities firms. Analyst Prashant Bhatia said he now expects New York-based Merrill, the third-largest U.S. securities firm by market value, to report a loss of $2.50 a share for the fourth quarter. He had previously estimated a profit of 85 cents. The analyst also cut his share-price forecast to $85 from $90."

Bloomberg - "Subprime Rate Five-Year Fix Agreed by U.S. Regulators" (12-5-07)

"Federal regulators and U.S. lenders agreed to freeze interest rates on subprime mortgages for five years to stem rising foreclosures, said a person familiar with the measure. President George W. Bush will announce the accord tomorrow, which was negotiated by officials including Treasury Secretary Henry Paulson. Paulson will hold a press conference tomorrow at 1:45 p.m. in Washington to discuss the plan, Treasury said in a statement."

Bloomberg - "AIG Calls Housing-Linked Investments `Manageable'" (12-5-07)

"The biggest U.S. insurer doesn't expect to sell mortgage- related investments at a loss while markets remain weak, said Joseph Cassano, head of AIG's financial products unit, in a presentation today to investors. AIG rose $2.70 to $58.15 at 4:01 p.m. in New York Stock Exchange trading, cutting this year's decline to 19 percent. AIG said the value of some holdings has fallen by $3.5 billion, which is less than 0.5 percent of the New York-based company's assets. Sullivan is under pressure from investors led by former CEO Maurice 'Hank' Greenberg who wants to shake up AIG's management and explore asset sales. AIG is this year's third-worst performer in the Dow Jones Industrial Average."

The Washington Post - "It's Not 1929, but It's the Biggest Mess Since" (12-5-07)

"We are only at the beginning of the financial world coming to its senses after the bursting of the biggest credit bubble the world has seen. Everyone seems to acknowledge now that there will be lots of mortgage foreclosures and that house prices will fall nationally for the first time since the Great Depression. Some lenders and hedge funds have failed, while some banks have taken painful write-offs and fired executives. There's even a growing recognition that a recession is over the horizon."

CNN - "A subprime bailout plan that works" (12-5-07)

"The Federal Housing Authority's FHASecure program offers refinancing options to move delinquent hybrid ARM borrowers into reasonable, fixed-rate loans. It should help about 250,000 home owners through 2008, according to Department of Housing and Urban Development spokesman, Steve O'Halloran. FHA is part of HUD. The program launched August 31 as delinquency filings were soaring. About 225,000 default and other foreclose notices were filed, nearly double the total of October 2006, according to the latest data from RealtyTrac."

Yahoo - "Five-Year Mortgage Rate Freeze Looms" (12-5-07)

"The Bush administration has hammered out an agreement to freeze interest rates for certain subprime mortgages for five years to combat a soaring tide of foreclosures, congressional aides said Wednesday."

Los Angeles Times - "Mortgage fallout felt by GOP" (12-5-07)

"The Bush administration's newly aggressive effort to help people facing foreclosure and shore up the troubled mortgage industry was sparked by growing concerns of an election-year recession, and the political damage that would cause, analysts said Tuesday. Indeed, a new Los Angeles Times/Bloomberg poll found that 71% of Americans now believe that a recession is likely. A majority also think that mortgage companies should be required to freeze lending rates to sub-prime borrowers who are at risk of default."