The Wall Street Journal - "Bush Unveils Plan to Address Mortgage Market 'Excesses'" (8-31-07)

"Addressing worries that a subprime mortgage meltdown could prompt a further wave of defaults and foreclosures in the U.S., President Bush unveiled a host of proposals Friday to help struggling homeowners, but warned that the federal government won't bail out real estate speculators. Flanked by Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson, Mr. Bush called on lawmakers to reform the Federal Housing Administration, temporarily change a tax provision that's hitting homeowners, and bring better transparency to the often opaque mortgage market."

NAR - "NAR President Issues Statement on Bush's Proposed FHA Changes" (8-31-07)

"Pat V. Combs, 2007 president of the National Association of Realtors®, released the following statement in support of Federal Housing Administration policy changes proposed today by President George W. Bush: 'The National Association of Realtors® strongly commends President Bush for his leadership in proposing a set of policies designed to ease the crisis in the mortgage industry and halt the rapidly increasing rate of foreclosures affecting many American families today.'"

CBIA - "New California Homes More Energy-Efficient Than Ever" (8-31-07)

"As Californians once again face power alerts, California homebuilders remind prospective buyers that today’s new homes use far less energy than homes built 15 to 20 years ago and far less energy than homes being built today in any other part of the nation."

Bloomberg - "Lone Star Cuts Offer for Accredited to $214 Million" (8-31-07)

"Lone Star Funds cut its takeover offer for Accredited Home Lenders Holding Co. by 44 percent to $214 million, after the subprime mortgage company fired 60 percent of its workers and stopped making new loans. Lone Star offered $8.50 a share, 35 percent more than yesterday's closing price, to defuse a legal scuffle that followed its attempt to back out of an earlier acquisition agreement with San Diego-based Accredited."

Herald Tribune - "More cutbacks for Lennar" (8-31-07)

"Lennar Corp., the big Miami home builder that reported a $255 million loss in the most recent quarter, has trimmed more than 60 additional positions from its Southwest Florida division, bringing it to its pre-housing-boom levels, an executive said. The cuts this week included Rob Allegra, the division president of Lennar Sarasota/Manatee, who has been the face of the home builder locally for more than a decade."

The Washington Post - "Forestalling Foreclosures" (8-31-07)

"Considering the projections for the number of home foreclosures in the next couple of years -- estimates now start at 1 million annually and go up from there -- you'd have thought there might be more ideas floating around for dealing with this economic, social and political calamity. We've had lots of brave talk from regulators and politicians about taking steps to make sure this doesn't happen again."

Yahoo - "Fed Chief Vows to Protect the Economy" (8-31-07)

"Federal Reserve Chairman Ben Bernanke vowed Friday to do all that is necessary to protect the national economy from the ill effects of a global credit crunch -- but not to bail out investors and lenders 'from the consequences of their financial decisions.' President Bush confidently predicted the country would safely weather the financial storm."

The Federal Reserve Board - "Remarks by Chairman Ben S. Bernanke" (8-31-07)

"Over the years, Tom Hoenig and his colleagues at the Federal Reserve Bank of Kansas City have done an excellent job of selecting interesting and relevant topics for this annual symposium. I think I can safely say that this year they have outdone themselves. Recently, the subject of housing finance has preoccupied financial-market participants and observers in the United States and around the world. The financial turbulence we have seen had its immediate origins in the problems in the subprime mortgage market, but the effects have been felt in the broader mortgage market and in financial markets more generally, with potential consequences for the performance of the overall economy."

Bloomberg - "Bush Pledges FHA Help for Subprime Borrowers" (8-31-07)

"President George W. Bush today pledged to help people who've fallen behind in their mortgages keep their homes and to tighten safeguards against predatory lending, while rejecting a bailout for 'speculators.' 'I plan to help homeowners, the government's got a role to play,' Bush said in a statement at the White House. But, he said, 'it's not the government's job to bail out speculators, or those who made the decision to buy a home they knew they could never afford.'"

The San Diego Union Tribune - "Credit innovation sowed subprime woes, study says" (8-31-07)

"While innovations in mortgage finance expanded home ownership around the world, they also sowed the seeds of the current U.S. subprime mortgage crisis, economists told a Federal Reserve conference on Friday."

Orange County Register - "O.C. home values fell in 2nd quarter" (8-31-07)

"The Office of Federal Housing Enterprise Oversight on Thursday said Orange County home values in the second quarter fell at a 1.62 percent annual rate. That's the first decline in this Orange County index since the first quarter of 1997 and the biggest drop since the second quarter of 1995."

Broker Universe - "California Resales Fall 22.7%" (8-30-07)

"The sales of existing single-family detached homes in California were down 22.7% in July from the level recorded a year earlier, according to the California Association of Realtors. The seasonally adjusted annualized rate of closed-escrow resales totaled 350,980 in July, down from the 453,980-unit rate recorded in July 2006, CAR reported. The median price of an existing single-family detached home in California totaled $586,030 in July, up 3.2% from a revised $567,860 a year earlier, the association said."

MBA - "OFHEO House Price Index Shows Smallest Quarterly Increase Since 1994" (8-30-07)

"U.S. home prices increased only slightly in the second quarter of 2007 according to the OFHEO House Price Index (HPI). The HPI, which is based on data from sales and refinance transactions, was 0.1 percent higher in the second quarter than in the first quarter of 2007. This is below the revised growth rate of 0.6 percent for the previous quarter and the lowest since the fourth quarter of 1994. Prices in the second quarter of 2007 were 3.2 percent higher than they were in the same quarter of 2006, the lowest annual price change since the 1996-97 period."

MBA - "Ginnie Mae" (8-30-07)

"Ginnie Mae is eliminating the restriction on the size of mortgage loans guaranteed by the Department of Veterans Affairs (VA) that can be pooled in mortgage-backed securities guaranteed by Ginnie Mae. Effective with pools issued on or after September 1, 2007, Ginnie Mae will no longer limit the size of VA loans to the maximum original loan amount for conforming loans. Conforming loans are mortgage loans that meet the purchase criteria of Fannie Mae or Freddie Mac, pursuant to Section 302(b)(2) of the National Housing Act, and Section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, respectively."

Yahoo - "Bernanke: Looking to help homeowners" (8-30-07)

"Federal Reserve Chairman Ben Bernanke is suggesting that policymakers look for ways to encourage a wider range of mortgages geared for low income and other borrowers who have been hard hit by the housing slump and credit crunch. Bernanke, in a letter to Sen. Charles Schumer, D-N.Y., that was released Wednesday, said the Fed is keeping close tabs on financial markets and is "prepared to act as needed" to ensure spreading credit problems that have rocked Wall Street in recent weeks don't hurt the economy. It's a message the central bank has been sending as the markets have grown more turbulent."

Reuters - "Fed not rushing to bail out investors with rate cut: report" (8-30-07)

"The U.S. Federal Reserve is not rushing to cut benchmark interest rates because it wants to break investors of the view that the central bank is there to bail them out, an article in the Wall Street Journal said on Thursday. Fed watcher Greg Ip, without quoting specific sources, said Fed Chairman Ben Bernanke was keen to draw a distinction between keeping financial markets ticking over and ensuring a sound economy."

Bloomberg - "Commercial Paper Extends Slump on Asset-Backed Woes" (8-30-07)

"The U.S. commercial paper market shrank for a third week, extending the biggest slump in at least seven years and signaling that the Federal Reserve's attempts to lower borrowing costs have had a limited impact so far. Asset-backed commercial paper, which accounted for half the market, tumbled $59.4 billion to $998 billion in the week ended yesterday, the lowest since December, according to the Federal Reserve. Total short-term debt maturing in 270 days or less fell $62.8 billion to a seasonally adjusted $1.98 trillion."

Bloomberg - "Britain's Housing Lenders Tighten Subprime Credit" (8-30-07)

"U.K. lenders responsible for 12 percent of the nation's mortgages are tightening standards for loans on house purchases, withdrawing offers and raising the cost for borrowers with less than perfect credit. Merrill Lynch & Co.'s Mortgages Plc unit said yesterday that it raised its interest rates. Northern Rock Plc, the Newcastle upon Tyne building society that had 8.4 percent of the market last year, and Residential Capital Corp.'s GMAC-RFC unit, with a 3.5 percent share, said they stopped some offers and lifted costs for others. Deutsche Bank AG did the same, while two lenders backed by Investec Plc have stopped all subprime loans."

Bloomberg - "Freddie Mac Net Drops on Provision for Housing Slump" (8-30-07)

"Freddie Mac, the second-biggest U.S. mortgage finance company, reported quarterly profit fell 45 percent after setting aside $320 million for losses as the housing slump deepened. Freddie Mac shares fell the most in more than two years after net income declined to $764 million, or $1.02 a share, from $1.4 billion, or $1.93, a year earlier. Revenue dropped 4.8 percent to $2.26 billion, McLean, Virginia-based Freddie Mac said today in a statement."

Bloomberg - "Thornburg Sells $500 Million of Preferred Shares" (8-30-07)

"Thornburg Mortgage Inc., the jumbo- mortgage specialist that was forced to stop making new loans, sold $500 million of convertible preferred stock to help alleviate a shortage of cash. Proceeds from the sale will help the Santa Fe, New Mexico- based company resume loan origination and the purchase of mortgage-backed securities, Thornburg said in a statement. The sale was completed four hours after it was announced, spurring a rally of as much as 17 percent in Thornburg shares on the New York Stock Exchange."

Bloomberg - "Bernanke May Hear Call for Fed Activism on Regulation" (8-30-07)

"Federal Reserve Chairman Ben S. Bernanke may be urged to consider tighter regulation as he and his counterparts clean up the financial mess from U.S. subprime- mortgage defaults. The central bank's hands-off approach to using interest rates to pop asset bubbles and reluctance to impose new rules will come under scrutiny as policy makers and economists from around the world gather for the annual symposium organized by the Kansas City Fed bank starting today in Jackson Hole, Wyoming."

Market Watch - "Investment homes are major part of defaults" (8-30-07)

"Mortgages for investment properties constitute a major chunk of defaults in four states with the fastest-rising rates of seriously delinquent loans, according to data released Thursday by the Mortgage Bankers Association. Mortgages on non-owner occupied properties in Nevada accounted for 32% of prime mortgage defaults as of June 30 as well as for 24% of subprime loan defaults, the MBA said."

Bloomberg - "H&R Block Loss Doubles on Costs to Fund Mortgage Unit" (8-30-07)

"H&R Block Inc., the biggest U.S. tax- preparer, said first-quarter losses more than doubled on costs to finance its money-losing subprime mortgage unit. The net loss for the fiscal quarter, which ended July 31, was $302.6 million, or 93 cents a share, compared with $131.4 million, or 41 cents, a year earlier, Kansas City, Missouri-based H&R Block said today in a statement. Losses excluding the mortgage unit were 34 cents a share, in line with the 35-cent average of seven analyst estimates compiled by Bloomberg."

CNN - "Flippers fuel foreclosures" (8-30-07)

"Flippers and other speculators investing in single-family homes helped drive up prices in many hot housing markets during the boom. Now they're contributing heavily to mortgage delinquencies in several of those markets. Defaults in non-owner occupied houses are driving defaults in four of the states with the fastest rising default rates in the nation, according to a report released Thursday by the Mortgage Bankers Association."

Real Estate Journal - "Home Prices Slide As Pullback Shows No Signs of Slowing" (8-30-07)

"The decline in U.S. home prices accelerated in the second quarter as a glut of unsold homes and tighter lending standards continued to weigh on the market. Home prices nationwide tumbled an average 3.2% from a year earlier, according to an index compiled by Standard & Poor's Corp. The decline was sharper than the year-to-year decline in the first quarter, when the S&P/Case-Shiller national home-price index dropped 1.6%."

NAR - "NAR, Mayors Recognize San Diego For Helping Everyday Heroes Become Homeowners" (8-29-07)

"The National Association of Realtors® and the U.S. Conference of Mayors have designated San Diego a 2007 Ambassador City for its Everyday Heroes program. Everyday Heroes helps San Diego police officers become homeowners, and was created by the San Diego Association of Realtors® Ambassadors Foundation and the San Diego Police Officer's Association."

MBA - "Mortgage Applications Decrease in Latest MBA Weekly Survey" (8-29-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 24, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 615.2, a decrease of 4.0 percent on a seasonally adjusted basis from 641.1 one week earlier. On an unadjusted basis, the Index decreased 5.3 percent compared with the previous week and was up 10.6 percent compared with the same week one year earlier.'

Financial Times - "Obama unveils radical mortgage plan" (8-29-07)

"Unscrupulous lenders who deceptively sold subprime mortgages to millions of Americans should be fined and the proceeds used to help bail out borrowers facing a wave of foreclosures, according to Barack Obama, the Democratic senator running to be his party’s presidential candidate."

Market Watch - "Week-to-week mortgage applications off 4.0%" (8-29-07)

"The number of mortgage applications filed last week slipped 4.0% from the previous week, while the average interest rate on one-year adjustable-rate mortgages shot up, the Mortgage Bankers Association said Wednesday. Also on a seasonally adjusted basis, applications for mortgages to purchase homes were down 4.0% on a week-to-week basis, according to the group's latest survey. And applications for loans to refinance existing mortgages were down 4.2% in the week ended Aug. 24"

CNN - "Subprime Mortgages: State by State" (8-29-07)

A map of the United States, which displays foreclosure statistics

The San Diego Union Tribune - "Nation's home prices plunge" (8-29-07)

"Prices of U.S. homes fell 3.2 percent in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the research group said yesterday. San Diego's 7.3 percent drop from the second quarter of 2006 ranked it third among metropolitan areas with the biggest price declines, behind Detroit's 11 percent decline and Tampa's 7.7 percent pullback."

Bloomberg - "`Subprime Chuck' Schumer Plays Fool in Crisis" (8-29-07)

"It's bad enough when a company's outside auditor is a pushover for management. Equally galling would be for the auditor to try telling management how to run the company. Yet that's what U.S. Senator Charles Schumer has asked the Big Four accounting firms to do at the subprime lenders they audit, pronto. 'One of the most promising solutions to the anticipated foreclosure crisis is the voluntary modification by lenders of existing unsustainable subprime loans,' Schumer, a New York Democrat, said in an Aug. 23 letter to the firms' top executives."

Reuters - "Subprime inflicts new damage as banks seek cash" (8-29-07)

"New evidence of damage wrought by the U.S. mortgage sector surfaced in the United States and Europe on Wednesday while banks demanded a record amount of cash at a euro zone money market auction. Cheyne Finance, a structured investment vehicle (SIV) managed by hedge fund Cheyne Capital Management, said it was seeking to restructure after being forced to start selling assets to pay down debt."

Seeking Alpha - "Consumer Credit: The Next Bubble?" (8-29-07)

"If there was a Wall St. zodiac, this year would probably be dubbed 'The Year of the Bursting Bubble'. Late 2006/early 2007 saw the markets accepting the end of the housing boom, then we had the subprime crisis followed by Alt-a mortgages and the realization that we had a full-fledged mortgage crisis. On the corporate credit front, we were hit with the credit crunch/liquidity crisis and the end of the buyout boom. Judging by some recent events and the Q2 earnings reports of the retail banks and other major lenders, an overall consumer credit bubble may be next."

Forbes - "Contraction in housing market to be worse than expected in rest of 2007" (8-29-07)

"Fitch Ratings said the contraction in the US housing market is likely to be more severe than anticipated during the rest of 2007, mainly due to tighter mortgage standards and disrupted mortgage markets. The rating agency added it sees 2008 to be another challenging year for the housing sector, as it expects operational and financial pressures not only to persist but to intensify for public homebuilders."

Bloomberg - "Fed Underestimated Debt Impact, Focused on Inflation" (8-29-07)

"Federal Reserve officials, underestimating the impact of credit-market turmoil, focused at their Aug. 7 meeting on inflation and slowing productivity. Minutes of the session released yesterday showed that the Fed was intent on securing credibility as an inflation fighter just 18 months into Chairman Ben S. Bernanke's term. Even though the central bank cut the discount rate on Aug. 17, the emphasis on prices forms the backdrop for deliberations next month."

The Washington Post - "Home Buyers Forced to Change Tactics" (8-29-07)

"Rattled investors have become reluctant to buy loans for more than that amount -- known as jumbo mortgages -- and that in turn has pushed some lenders to raise interest rates. Caught in the middle are potential home buyers who are getting walloped by higher rates or shut out of the market. The phenomenon is particularly significant in Washington, where half the homes sell for more than $417,000. Here, home buyers are figuring out how to adapt to the new circumstances by making larger down payments or splitting their purchase into two loans to dodge higher rates. Others are sitting tight until the rates go down."

Yahoo - "Subprime Mortgage Woes Spreading" (8-29-07)

"The subprime mortgage crisis is spreading to a somewhat unexpected place: homes costing more than $500,000. As lending has rapidly gotten more restrictive for borrowers taking out large loans, sales of expensive homes have fallen sharply around the country during what should be one of the busiest seasons for buyers and sellers, mortgage bankers and real estate agents say."

Yahoo - "Home Prices: Steepest Drop in 20 Years" (8-28-07)

"U.S. home prices fell 3.2 percent in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the research group said Tuesday. The decline in home prices around the nation shows no evidence of a market recovery anytime soon, one of the architects of the index said."

Reuters - "CIT Group closes mortgage unit, takes charge" (8-28-07)

"CIT Group Inc (CIT.N: Quote, Profile, Research), the consumer and commercial finance company, on Tuesday said it has closed its mortgage lending operations, the latest to abandon the sector amid difficult market conditions. The company said it will take a $35 million pretax charge in the third quarter for severance and exit costs. It said its loan collection and customer service activities are unaffected."

The Washington Post - "Ratings Firms Defend Assessment of Loan Securities" (8-28-07)

"For months, securities backed by risky mortgage loans have been in trouble. Now, the credit-rating agencies that once blessed those securities as safe investments are in trouble, too. The stock of Moody's Investors Service, one of the major raters, is down about 40 percent from its 52-week high on heavy trading. Members of Congress are calling for hearings and more oversight of the rating firms. And institutional investors and industry observers have blamed the agencies for being months late in downgrading a slew of residential-mortgage-backed securities that soon imploded, prompting hedge funds to collapse, foreign governments to intervene and mortgage firms to lay off tens of thousands."

Forbes - "Moody's to Review IndyMac Credit Rating" (8-28-07)

"Credit rating agency Moody's Investors Service said Tuesday it is reviewing IndyMac Bancorp Inc. and its thrift subsidiary IndyMac Bank FSB for a possible downgrade because of the company's exposure to the troubled mortgage market. IndyMac is one of the largest alt-A mortgage lenders in the nation. Alt-A mortgages are loans given to customers with minor credit problems or who are unable to fully document their income and assets like a traditional prime borrower."

Forbes - "Moody's Downgrades Fremont Credit Rating" (8-28-07)

"Credit rating agency Moody's Investors Service said Tuesday it downgraded Fremont General Corp.'s senior debt rating to 'Caa2' from 'B3,' due to low capital levels and increased uncertainty that Fremont can meet its obligations. A ratings downgrade generally means it would be more expensive for Fremont to borrow money."

Bloomberg - "Lehman, Bear Stearns, Citigroup Rating Cut by Merrill" (8-28-07)

"Lehman Brothers Holdings Inc., Bear Stearns Cos. and Citigroup Inc. were downgraded by Merrill Lynch & Co. stock analyst Guy Moszkowski because of looming losses on mortgage bonds and leveraged loans, as well as a slowdown in investment banking. Moszkowski, the top-ranked U.S. brokerage analyst in Institutional Investor magazine's survey of money managers, said in a note to clients that New York-based Lehman and Bear Stearns will be hurt because of their dependence on debt markets. He cut earnings estimates for the two securities firms, as well as for Citigroup and JPMorgan Chase & Co., the largest banks based in New York. All four stocks fell in trading today."

Los Angeles Times - "Wall Street slips on housing, growth worries" (8-28-07)

"Wall Street pulled back today, losing momentum from last week's gains after news that sales of existing homes slipped in July for a fifth straight month stirred concerns about the strength of the economy. Sales of existing homes slowed to their most sluggish pace in nearly five years, while home prices fell for a record 12th straight month. The National Association of Realtors reported that existing home sales slipped by 0.2 percent in July to a seasonally adjusted annual rate of 5.75 million units. Inventories rose 5.1 percent to a record 4.59 million units."

Real Estate Journal - "Desperate Home Sellers Try Unconventional Selling Tactics" (8-28-07)

"Tammy Winfield made every effort to depersonalize her home and keep it free of clutter. She even baked cookies before prospective buyers came in for a look, hoping that the homey scents would help persuade them to make an offer. Still, the Truckee, Calif., home that she and her husband, Bill, put on the market in September sat for months without any takers."

MSN - "Developers helped build a bust" (8-26-07)

"Elizabeth and Armando Motto are living a real-estate nightmare with a new breed of monster: the big home builder as lender. In November 2005, the couple, who have four children, agreed to pay $540,000 for a newly built three-bedroom house in suburban Clarksburg, Md., near Washington, D.C. Rather than send them to a bank, the builder, Beazer Homes USA Inc., offered to provide a mortgage itself in an arrangement of the sort that helped fuel the long housing boom across the country."

The San Diego Union Tribune - "Why can't mortgages be more affordable?" (8-26-07)

"Ever since P.T. Barnum imported an elephant named Jumbo to America, the word jumbo (based on an African word for elephant) has been a synonym for gigantic. Huge. Enormous. Except when it comes to home loans. Especially in a place like San Diego. Across the nation, a jumbo mortgage is defined as any loan that is above the “conforming limit,” which is currently set at $417,000."

Recordnet.com - "Realtor numbers thin during slump" (8-26-07)

"Victoria Rodriguez was not only a thriving real-estate agent in recent years, she was honored as one the area's top-selling real-estate agents four years in a row. That was in the boom time, and that spigot shut down to a trickle nearly two years ago. Today Rodriguez is still in the real-estate field, but she's not working as an agent. As a single mother with four children, she said she simply couldn't pay her bills. This in a residential real-estate market slammed so hard that sales plummeted over the months from nearly 900 in May 2005 to a low of 268 last month - a 70 percent decline in business."

Los Angeles Times - "Property value worries sink Santa Barbara art project" (8-26-07)

"Call it the Santa Barbara meltdown. Two of the city's great preoccupations -- progressive politics and sky-high real estate values -- have collided over the last couple of months, yielding high drama over an art project that was to denote land imperiled by global warming with blue waves painted on downtown intersections."

Orange County Register - "O.C. Foreclosures by ZIP code" (8-26-07)

"In the three months ending on June 30, 2007, the number of foreclosures in Orange County increased to 840 from 101 during the same period last year."

Orange County Register - "O.C.’s got a year’s worth of home to sell" (8-27-07)

"Jitters in world financial markets helped nudge the inventory of O.C. homes for sale past one year’s worth of current buyers’ demand, says Steve Thomas at Re/Max Real Estate Services in Aliso Viejo. Thomas calculates “market time,” a benchmark of how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. This index shows the inventory-to-selling ratio taking a decided upswing."

NAR - "Existing-Homes Sales Stable In July" (8-27-07)

"Existing-home sales were essentially unchanged in July, with increases in the West and Northeast offset by a decline in the Midwest, according to the National Association of Realtors®. Total existing-home sales – including single-family, townhomes, iniums and co-ops – slipped 0.2 percent to a seasonally adjusted annual rate1 of 5.75 million units in July from an upwardly revised pace of 5.76 million in June, and are 9.0 percent below the 6.32 million-unit level in July 2006."

CBIA - "California Housing Starts Drop Again in July as Buyers Watch and Wait, CBIA Reports" (8-27-07)

"California homebuilders continued to cut back on production in July, as buyers continued to wait and watch, exacerbated by the recent financial turmoil in the credit and lending industries, the California Building Industry Association reported today. Total housing starts in California, as measured by building permits issued, fell by 22 percent in July when compared to the same month a year ago. According to housing permit data supplied by the Construction Industry Research Board, production of single-family homes fell by nearly one third while multifamily units saw a slight increase in permits being pulled when compared to July of 2006."

Yahoo - "Home Sales Hit Slowest Pace in 5 Years" (8-27-07)

"Sales of existing homes dropped for a fifth straight month in July, falling to the slowest pace in nearly five years, while home prices fell for a record 12th consecutive month. The National Association of Realtors reported that sales of existing homes dipped by 0.2 percent last month to a seasonally adjusted annual rate of 5.75 million units."

The Washington Post - "Cutbacks Mount in Real Estate Industry" (8-27-07)

"Washington's real estate industry, already pinched by a slowdown in residential construction, is bracing for further retrenchment after last week's meltdown in the mortgage market. In recent months, companies have begun cutting back in big ways and small. A Prince George's County builder laid off four workers and turned off the spigot for new projects. A four-person title company in Arlington is cutting its staff by one after watching business fall. A Fredericksburg drywaller let his 10 employees go and is struggling to keep the business afloat."

Bloomberg - "U.S. Home Resales Declined in July for a Fifth Month" (8-27-07)

"Sales of previously owned homes in the U.S. fell in July for a fifth consecutive month, adding to the inventory of unsold properties and showing the housing slump that triggered a collapse in credit markets will drag on. Purchases declined 0.2 percent, less than forecast, to an annual rate of 5.75 million, from 5.76 million in June, the National Association of Realtors said today in Washington. That was the slowest pace since November 2002. Sales dropped 9 percent compared with a year earlier."

Bloomberg - "Housing Market Crisis May Already Have Passed: Kevin Hassett" (8-27-07)

"Has the U.S. housing market hit bottom? The market has been in free fall for some time now, with the subprime scare roiling bond and equity markets in a way that has not been seen since the Asian financial crisis of a decade ago."

Los Angeles Times - "Stocks fall following drop in July home sales, spike in inventories" (8-27-07)

"Wall Street retreated today, losing momentum from last week's gains after news that sales of existing homes slipped in July for a fifth straight month stirred concerns about the strength of the economy. Sales of existing homes slowed to their to their most sluggish pace in nearly five years, while home prices fell for a record 12th straight month. The National Association of Realtors reported that existing home sales slipped by 0.2 percent in July to a seasonally adjusted annual rate of 5.75 million units. Inventories rose 5.1 percent to a record 4.59 million units."

Real Estate Journal - "Five Houses Vie to Become Most Expensive Home Sale" (8-27-07)

"It might seem foolish given the recent news from Wall Street, but a group of homeowners is holding firm on an ambitious goal -- to break the record for the most expensive home sale in American history. The price to beat is $103 million. Two years ago, at the peak of the real-estate boom, only a handful of homes in the U.S. had ever been listed for $75 million, let alone $100 million. Even the highest residential sale to date -- investor Ron Baron's $103 million purchase earlier this year of a 40-acre compound in East Hampton, N.Y. -- was never publicly listed. The deal was so secret that the brokers weren't named."

Los Angeles Times - "Stocks fall following drop in July home sales, spike in inventories" (8-27-07)

"Wall Street retreated today, losing momentum from last week's gains after news that sales of existing homes slipped in July for a fifth straight month stirred concerns about the strength of the economy. Sales of existing homes slowed to their to their most sluggish pace in nearly five years, while home prices fell for a record 12th straight month. The National Association of Realtors reported that existing home sales slipped by 0.2 percent in July to a seasonally adjusted annual rate of 5.75 million units. Inventories rose 5.1 percent to a record 4.59 million units."

Los Angeles Times - "Bill would end mortgage tax deduction for 'McMansions'" (8-27-07)

"To add to mortgage meltdown miseries, the credit panic, plunging home sales and rising foreclosures, here's a new worry: a proposed cutoff of mortgage-interest tax deductions for all houses larger than 3,000 square feet. One of Capitol Hill's most experienced and powerful legislators is drafting a 'carbon tax' bill that would do precisely that. Rep. John Dingell (D-Mich.), chairman of the House Energy and Commerce Committee, expects to introduce comprehensive climate change reform legislation once Congress returns next month."

Bloomberg - "Bear Stearns Judge Delays Ruling Banning U.S. Suits" (8-27-07)

"A federal judge refused to grant permanent protection from U.S. lawsuits for Bear Stearns Cos.' two bankrupt hedge funds, questioning whether the Cayman Islands should be the principal site of their liquidation. U.S. Bankruptcy Judge Burton Lifland in New York today said he 'will issue a decision in the next week to 10 days'' on whether Bear Stearns picked the proper jurisdiction for the funds, whose assets are mostly located in New York."

The San Diego Union Tribune - "Mortgage crisis? What crisis?" (8-25-07)

"On aol.com this week, Internet-based loan company Lending Tree offered 'bad-credit options' and a $425,000 loan for $1,376 a month. And Countrywide Financial Corp., the nation's largest lender, declared: 'Bad Credit? Call Today. Refinance or Tap Into Your Home's Equity' in an online ad from its Full Spectrum Lending Division."

Bloomberg - "U.S. Bill Yields Rise From Two-Year Low as Credit Concerns Ease" (8-25-07)

"U.S. three-month Treasury bill yields rose from a two-year low as the Federal Reserve's move to cut its discount rate and the prospect of Treasury Department bill sales helped ease demand for the safest government securities. The Treasury will auction $24 billion in three-month and $19 billion in six-month bills on Aug. 27. It will be the biggest three-month sale since at least July 1990, when Bloomberg began compiling the data, and the largest six-month auction since March 2006. Investor appetite for the bills has risen along with concern that companies are having trouble rolling over commercial paper debt."

Los Angeles Times - "Stocks gain to finish a quieter week" (8-25-07)

"Wall Street ended its calmest week in a month with a big advance in stock prices Friday, rising on solid economic readings that countered the bleak sentiment that has blanketed the financial markets. The Dow Jones industrial average rose more than 140 points. Stocks started out flat but jumped after a stronger-than-expected reading on July sales of new homes. Those figures came after the government said that orders for big-ticket goods rose sharply last month."

Los Angeles Times - "July new-home sales, durable goods orders rise" (8-25-07)

"Sales of new single-family U.S. homes unexpectedly rose in July and orders for durable goods posted strong gains that underlined the economy's strength just before a credit crisis socked financial markets. New-home sales rose 2.8% to an 870,000 annual pace last month, reversing two months of declines, and inventories eased, a Commerce Department report showed Friday. Analysts were expecting new home sales to dip to an 820,000 annual sales pace."

NAHB - "July New-Home Sales Rebound Slightly From Weak June" (8-24-07)

"Sales of new single-family homes were up 2.8 percent in July to a seasonally adjusted annual rate of 870,000 units as new-home sales rebounded from weak sales figures in June, the U.S. Commerce Department reported today. The July sales pace was 10.2 percent below a year earlier."

The Washington Post - "Why We Need a Housing Rescue" (8-24-07)

"During times of market turmoil, it helps to get down to basics. Goodness knows it's not easy to understand the maze of financial structures that appear to be unwinding. They were created by wizards of complexity: youthful financial engineers trained to exploit cheap money and leverage and who have, until the past few weeks, never known the sting of the market's lash."

Asia Times - "Central bank impotence and market liquidity" (8-24-07)

"After months of adamant official denial of any potential threat of the subprime mortgage meltdown spreading to the global financial system, the US Federal Reserve (Fed) last Friday, a mere 10 days after declaring market fundamentals as strong and inflation as its main concern, took radical steps to try to halt financial market contagion worldwide that had become undeniable."

Herald Tribune - "Many kinds of pain as housing woes hit all sectors" (8-24-07)

"Sun-soaked Southwest Florida is largely considered an enclave of wealth. Until the downturn in the housing market, its turbo-charged economy was seemingly stifled only by worker shortages and other symptoms of its growing pains. But the last year of suffering in the real estate market has slowly percolated to nearly every industry in the region."

Yahoo - "New-Home Sales Rise, Factory Orders Up" (8-24-07)

"Sales of new homes perked up, while factory orders took off in July, raising hopes that the economy can safely weather financial turmoil that has shaken Wall Street. The Commerce Department reported Friday that new-home sales rose 2.8 percent in July, after falling 4 percent in June. The increase in July lifted sales to a seasonally adjusted annual rate of 870,000 units. A second report showed that orders to factories for big-ticket goods jumped 5.9 percent in July, the most in 10 months."

MSNBC - "What credit mess? Subprime offers roll on" (8-24-07)

"On AOL.com this week, the Internet-based loan company LendingTree offered 'Bad credit options' and a $425,000 loan for only $1,376 a month. And Countrywide Financial, the nation's largest mortgage lender, declared, 'Bad Credit? Call Today. Refinance or Tap into Your Home's Equity' in an online ad from its Full Spectrum Lending Division. No-money-down mortgages and subprime loans that cater to people with spotty credit are quickly disappearing as lenders tighten their standards in response to a rise in foreclosures. But you wouldn't know that if you looked at the ads that some banks and loan companies have placed on the Internet and in newspapers, including this one, often right next to the very stories chronicling the meltdown in the mortgage industry. So what's with the mixed messages?"

Bloomberg - "It's Time to Meet Subprime Devil We Don't Know" (8-24-07)

"Ever since financial markets went into their summer swoon, economists, analysts and journalists have been trying to explain why a small number of defaults on a small number of home loans morphed into a global liquidity and credit squeeze. How on earth did the subprime mess come to this? It's not easy to comprehend or explain the linkages from loans to bonds to credit derivatives and back to loans (the unwillingness to make new ones of any kind!), which is why I'm taking another stab at it. This time around, I learned that the bigger threat is not what we know about these complex credit derivatives, but what we don't know."

Bloomberg - "New Home Sales in U.S. Probably Fell to 7-Year Low" (8-24-07)

"New home sales probably dropped to the lowest level in seven years in July, showing a deepening housing recession that will drag down U.S. economic growth. Purchases fell to an annual rate of 820,000 last month from 834,000 in June, according to the median forecast of 73 economists surveyed by Bloomberg News. That would be the slowest pace of sales since June 2000."

Bloomberg - "Bear Stearns Ordered to Pay Former Broker $845,000" (8-24-07)

"Bear Stearns Cos., the fifth-biggest U.S. securities firm, was ordered to pay a former managing director $845,000 after he accused the bank of soliciting his clients in violation of a severance agreement. regory Fisher claimed in an arbitration hearing this month that when he left Bear Stearns in April 2005, the firm told him it wouldn't seek business from his clients 'because of increased regulatory burdens imposed by the USA Patriot Act,' his lawyers said in a statement today. The clients were banks and brokerages in the Caribbean and Central America."

Bloomberg - "Subprime Scare Recalls Panic of 1907, Year of Crisis, Contagion" (8-24-07)

"'The Panic of 1907,' a vivid history of a crash 100 years ago, landed on my desk just before the U.S. Federal Reserve lowered the discount rate last week. The timing was right for a book that describes how panics arise -- and what it takes to arrest them. As a mountain of shaky mortgages subsided into a sinkhole this month, I had started counting Bloomberg stories in which market pros uttered the word 'panic.' My tally peaked at 63 the day before the Fed cut, then ticked down to 17 by this Wednesday as credit conditions eased."

Bloomberg - "Bank of China Holds $9.7 Billion of Subprime Assets" (8-23-07)

"Bank of China Ltd., the nation's second-largest bank, said it holds almost $9.7 billion of securities backed by U.S. subprime loans, the most of any Asian company. The Beijing-based bank set aside 1.15 billion yuan ($152 million) against possible losses on asset-backed securities and collateralized debt obligations backed by loans to borrowers with poor credit histories, it said in a statement today. The bank today announced first-half net income of 29.5 billion yuan."

CNN - "Bernanke: The un-Greenspan" (8-23-07)

"It may be the most important development to emerge from the recent market turbulence: The Federal Reserve, under Chairman Ben Bernanke, is going back to being a central bank. Judging by its cautious and finely-calibrated responses through a very ugly August, the Fed appears keen to put the Alan Greenspan years firmly in the past and take a much more orthodox approach to monetary policy. While the Fed will probably cut interest rates as early as next month, its behavior in August strongly suggests that Bernanke will avoid using interest rates to deliberately spark big increases in lending, the high risk strategy pursued by Greenspan from 2001 to 2004."

The San Diego Union Tribune - "Past-due mortgages swamp banks, thrifts" (8-23-07)

"U.S. banks and thrifts suffered the biggest increase in late loan payments in 17 years as more homeowners fell behind on mortgages, the Federal Deposit Insurance Corp. said yesterday. Loans more than 90 days past due rose 10.6 percent to $66.9 billion in the period ending June 30, the largest quarterly increase since 1990, the FDIC said in its Quarterly Banking Profile."

Charles Hugh Smith - "Two Irresistible Reasons Housing Will Retrace to 1997 Prices" (8-23-07)

"To get started, let's stipulate that the Great Housing Boom of the past decade was not a housing boom--it was a speculative debt-fueled bubble which happened to occur in the asset class known as real estate. As a speculative bubble, it shares the same characteristics as other speculative manias in tulips, stocks, toilet paper, etc. (Note that there is one key difference between worthless stock certificates and toilet paper: the TP has a practical use.)"

Orange County Register - "Housing industry causing ... earthquakes? cancer?" (8-23-07)

"With the current market disruption still in full swing, the media machine generates news stories almost daily about the end of the world being caused by the housing industry. Based on what we’re reading, it’s pretty clear that our industry is the root cause of a stock market crash, the war in Iraq, earthquakes in South America and most forms of cancer. 'While some of those might be true, and the down cycles inherent in the housing market are always painful, all this media coverage seems to be heavy on 'doom and gloom' and a little light on actual analysis.'"

Real Estate Journal - "How FHA Could Help Borrowers Refinance and Avoid Foreclosure" (8-23-07)

"As the subprime-mortgage crisis ripples through the broader housing market, the Bush administration is eyeing an often overlooked federal mortgage insurer to help low- and middle-income homeowners avoid foreclosure. President Bush has balked at allowing mortgage giants Fannie Mae and Freddie Mac to buy more mortgages for their portfolios to ease the credit crunch triggered by rising defaults on home loans to borrowers with poor credit. But he said earlier this month that he supports giving the Federal Housing Administration more flexibility to help those facing foreclosure refinance their homes."

The Wall Street Journal - "Bank of America to Invest $2 Billion in Countrywide" (8-22-07)

"Bank of America Corp. is making a $2 billion equity investment in Countrywide Financial Corp., the embattled mortgage giant, according to people familiar with the situation. Bank of America will purchase $2 billion worth of preferred Countrywide stock yielding 7.25%"

MBA - "Q2 2007 Commercial/Multifamily Loan Originations Remain Strong Overall" (8-22-07)

"Commercial and multifamily mortgage bankers' loan originations were once again strong in the second quarter, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Up from the first quarter, second quarter originations were 40 percent higher than compared to the same period last year. The increase was seen across most property types and investor groups."

MBA - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (8-22-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 17, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 641.1, a decrease of 5.5 percent on a seasonally adjusted basis from 678.7 one week earlier. On an unadjusted basis, the Index decreased 6.5 percent compared with the previous week and was up 14.2 percent compared with the same week one year earlier. The Refinance Index decreased 6.4 percent to 1806.3 from 1929.6 the previous week and the seasonally adjusted Purchase Index decreased 5.0 percent to 441.5 from 464.9 one week earlier. On an unadjusted basis, the Purchase Index decreased 6.6 percent to 467.5 from 500.4 the previous week. The seasonally adjusted Conventional Index decreased 5.7 percent to 932.0 from 987.9 the previous week, and the seasonally adjusted Government Index decreased 4.4 percent to 156.0 from 163.2 the previous week."

Bloomberg - "Wells Fargo Gorges on Mark-to-Make-Believe Gains" (8-22-07)

"There's the kind of earnings investors can take to the bank. And then there's the kind the bank can show to investors. Word to Wells Fargo & Co. investors: Beware the second kind. Last quarter Wells Fargo reported record net income of $2.28 billion, up 9 percent from a year earlier. Read the footnotes to its latest quarterly report, though, and you will see a new term in accounting lingo called 'Level 3' gains. Without these, the financial-services company's earnings would have declined."

Bloomberg - "U.S. Stocks Rally on Takeover Speculation; MGM, Nymex Advance" (8-22-07)

"U.S. stocks climbed for a fifth day on speculation the Federal Reserve's actions to assuage the surge in the cost of credit will lead to a pickup in takeovers. MGM Mirage, the world's second-largest casino company, posted its biggest gain in three months after Dubai agreed to buy a stake. Nymex Holdings Inc. climbed after its chairman said the world's largest energy exchange may be bought."

Bloomberg - "H&R Block Taps Credit Line, Cites `Unstable' Markets" (8-22-07)

"H&R Block Inc., the biggest U.S. tax preparer, tapped bank lines of credit twice in the past week after its usual sources of cash began drying up. The company borrowed $200 million on Aug. 16 because turmoil in credit markets curbed access to commercial paper, used to meet immediate cash needs, H&R Block said today in a statement. The loan was repaid on Aug. 20, when Kansas City, Missouri-based Block drew an additional $850 million."

Bloomberg - "Bernanke's Strategy of Increasing Liquidity Survives" (8-22-07)

"The Federal Reserve's strategy of increasing liquidity rather than resorting to a cut in the benchmark interest rate survived a third day. Yields on Treasury bills rose yesterday after the New York Fed lowered the cost of borrowing securities from its own portfolio to ease a shortage in the market. The action followed a reduction in the Fed's rate on direct loans to banks on Aug. 17, the impact of which officials said they need time to assess."

Bloomberg - "Bonuses on Wall Street Threatened by Credit Crunch" (8-22-07)

"The credit-market freeze that's paralyzing leveraged buyouts, mergers and myriad computer-driven trading strategies may cut Wall Street bonuses for the first time in five years. 'There's a lot of pessimism out there,' said Gary Goldstein, chief executive officer of executive-search firm Whitney Group in New York. 'Looking at the world today as we see it and the impact the crunch is likely to have, it looks like bonus pools will decline.'"

The Wall Street Journal - "Fed Is Hopeful on Steps So Far" (8-22-07)

"Federal Reserve officials are cautiously optimistic that the series of steps they have taken to stabilize markets have started to work. Officials acknowledge conditions are far from calm, and markets could easily take a turn for the worse. But they cite stable stock prices, a pickup in issuance of jumbo mortgages and other factors as evidence that in recent days conditions have improved, though gradually, instead of worsened."

The Wall Street Journal - "How FHA Could Help Borrowers" (8-22-07)

"As the subprime-mortgage crisis ripples through the broader housing market, the Bush administration is eyeing an often overlooked federal mortgage insurer to help low- and middle-income homeowners avoid foreclosure. President Bush has balked at allowing mortgage giants Fannie Mae and Freddie Mac to buy more mortgages for their portfolios to ease the credit crunch triggered by rising defaults on home loans to borrowers with poor credit. But he said earlier this month that he supports giving the Federal Housing Administration more flexibility to help those facing foreclosure refinance their homes."

Yahoo - "3 ways to help borrowers without bailing them out" (8-22-07)

"The July foreclosure numbers that came out Tuesday are a sobering reminder of just how bad the nationwide mortgage crisis is becoming. Fueled in large part by shaky lending to people with less than perfect credit, foreclosure filings nearly doubled from a year ago and are running at an annual rate of more than 2 million."

Yahoo - "Mortgage Lenders Move to Cut Costs" (8-22-07)

"Accredited Home Lenders Holding Co. will slash its work force by more than half and stop accepting new mortgage applications in the U.S. as it struggles to survive in the troubled home lending industry, the company said Wednesday. San Diego-based Accredited, which issued $15.77 billion in home loans last year, said it will cut about 1,600 of its 2,600 positions and close 65 branches."

The San Diego Union Tribune - "Put moratorium on foreclosures, state consumer coalition advises" (8-22-07)

"Consumer advocates yesterday called for a moratorium on home foreclosures, warning that California is facing a tidal wave of foreclosures over the next year as more homeowners are hit with payment increases brought on by subprime loans and risky mortgages. 'The curve is really starting to go up,' said Alan Fisher, executive director of the California Reinvestment Coalition, a group of nonprofit organizations and public agencies that advocate for the poor and minorities. 'We're seeing just the beginning of a problem.'"

eFinanceDirectory - "Home Foreclosures Rise, a Moratorium on Foreclosures Is Proposed" (8-22-07)

"Some of the increase in foreclosure activity can be attributed to classic factors like job loss, health problems, divorce, etc. This is most evident in Michigan and Ohio, two states that have experienced a wave of job loss in manufacturing sectors. In other states like California, Florida and Georgia, the blame lies with irresponsible borrowing and lending. Over the last few years, homebuyers in these states have stretched their finances to the limit. To get the most house for the money, many borrowers used exotic mortgages like interest only loans and ARMs with low teaser rates. Of course, once the rates and terms change on these loans, it can be very difficult to afford the home."

Bloomberg - "Thornburg Sells Securities to Revive Home Lending" (8-20-07)

"Thornburg Mortgage Inc., the jumbo- mortgage specialist that stopped taking loan applications last week because of a cash crunch, sold $20.5 billion of securities at a discount to pay down debt it couldn't refinance. The Santa Fe, New Mexico-based company will record a $930 million loss in the third quarter on the sale of the mortgage- backed bonds, resulting in a probable net loss for the year, President Larry Goldstone said in an interview. Thornburg's shares, which gyrated between $7.49 and $18.35 last week, dropped as much as 13 percent today."

Bloomberg - "Treasury Bill Yields Fall Most Since 1987 on Money Fund Demand" (8-20-07)

"Yields on U.S. Treasury bills fell the most in two decades on demand for the safest securities amid concern over a widening credit crunch. Bill yields have fallen five straight days as money market funds dumped asset-backed commercial paper in favor of the shortest-maturity government debt. Three-month yields dropped the most since the stock market crash of 1987 and more than in the wake of the Sept. 11, 2001, terror attacks in the U.S, as funds shunned assets that may be linked to a weakening mortgage market."

Bloomberg - "Subprime Infects $300 Billion of Money Market Funds, Hikes Risk" (8-20-07)

"Money market funds were invented 37 years ago to offer investors better returns than bank savings accounts while providing a high degree of safety. Most of the $2.5 trillion sitting in these funds is invested in such assets as U.S. Treasury bills, certificates of deposit and short-term commercial debt."

Bloomberg - "Inflation Risks Vanish in Financial Market Haze" (8-20-07)

"It took a fair amount of kicking and screaming from financial markets last week to prod the Federal Reserve into action. But act it did, cutting the discount rate by 0.5 percentage point to 5.75 percent before the New York Stock Exchange opened Friday. The unexpected action had an immediate and positive impact on global stock markets, which reversed earlier losses. It took some of the bloom off the three-month Treasury bill, whose rate had tumbled more than 100 basis points in the span of a week. And it reinforced expectations that the Fed was close to cutting the overnight benchmark rate, now at 5.25 percent, perhaps even before the next meeting on Sept. 18."

Yahoo - "Countrywide Said to Begin Layoffs" (8-20-07)

"Countrywide Financial Corp., the nation's largest mortgage lender, sought to reassure customers Monday that the liquidity problems dogging its mortgage operations were not affecting its banking unit. The assurance came amid a report that Countrywide has started laying off an undisclosed number of employees as it tries to ride out the credit crunch that has rocked the home loan industry."

Market Watch - "Fannie Mae to skip benchmark debt offering in August" (8-20-07)

"Mortgage-buyer Fannie Mae will skip a benchmark debt offering for the first time since May 2006, the company said Monday. "We utilized our option to pass," a spokeswoman said, without elaborating further. Fannie is permitted to pass twice a year on the offerings. On its web site, Action Economics said the move "suggests that demand [for] even high-rated mortgage paper is scant at the moment and impacting funding plans at the agency." Shares of Fannie Mae were recently off 1.1%, at $66.55."

Orange County Register - "O.C. real estate/finance jobs take biggest hits since '93" (8-20-07)

"O.C. real-estate and lending job counts are off 5,200 in the year ended in July, by this blog's math. That is the biggest year-over-year drop in these property-related businesses since June '93. And the state's count does not track the self-employed or the off-the-books workers, which have been hard hit, too. It's worth noting that one year ago, real estate/lending was adding workers at a 7,500-jobs-per-year pace."

The San Diego Union Tribune - "Condo growth slowing down" (8-19-07)

"The ugly side of San Diego's condominium downturn is on display along Fifth Avenue. The bones of what was supposed to be Atmosphere, nearly 80 'luxury live/work units for a life well-designed,' sit open to public view. Naked steel rods and yawning holes are in the earth. The wood and chain-link fence around the site looks like it has been pried open in a couple of places."

The San Diego Union Tribune - "S.D. housing market may only be in eye of storm" (8-19-07)

"The release of the latest real estate figures last week – showing a 2.2 percent decline in the median price of a house in San Diego in July – prompted some observers to express the hope that things can only get better from here. 'Most of the declines in San Diego have happened,' John Karevoll, an analyst with La Jolla's DataQuick Information Systems, said last week. 'Now it appears to be re-establishing a balance we have yet to see for the (Southern California) region.'"

The San Diego Union Tribune - "After foreclosure" (8-19-07)

"Some displaced homeowners are getting a cool reception as the surge in real estate foreclosures sends them back to the rental market in search of shelter. Although landlords welcome the business, they are carefully screening applicants to make sure they remain creditworthy."

Los Angeles Times - "Analyzing the Fed's move" (8-18-07)

"L.A. Times columnist Tom Petruno writes that the Fed bought some time to restore confidence in financial markets: 'However else the decision was dressed up -- Fed supporters say policymakers intervened to protect the economy, while critics say the central bank is simply bailing out major financial companies -- this ultimately was about confidence.' The New York Times' Louis Uchitelle sees a more specific goal -- reviving the suddenly frozen market for jumbo mortgages and other "creditworthy" mortgages: 'Fed policy makers and Treasury officials said that in cutting the discount rate, the Fed’s principal goal was to shore up the market for creditworthy mortgages, including those for more expensive homes.'"

NAHB - "NAHB Applauds Federal Reserve Move To Calm Markets" (8-17-07)

"The National Association of Home Builders (NAHB) applauds the Federal Reserve Board for moving to temporarily reduce the primary credit rate by 50 basis points. NAHB also applauds the Fed’s move to allow the provision of term financing for as long as 30 days, renewable by the borrower, and to accept home mortgages and related assets as collateral for discount window loans to banks. Such changes reflect the Federal Reserve Board’s willingness to act quickly to help restore orderly conditions in financial markets, provide depositories with greater assurance about the cost and availability of funding, and help ease liquidity concerns that are affecting the mortgage market."

DQNews - "California July 2007 Home Sales" (8-17-07)

"A total of 35,185 new and resale houses and condos were sold statewide last month. That's down 8.1 percent from 38,291 for June, and down 21.9 percent from 45,051 for July 2006. Last month's sales made for the slowest July since 1995 when 30,596 homes were sold. July sales from 1988 to 2007 range from the 30,596 in 1995 to 71,186 in 2004. The average is 48,200. On a year-over-year basis, sales have declined the last 22 months."

USA Today - "Mortgage pinch causes domino effect of pain" (8-17-07)

"Matt and Kimberly Brown's contract to buy a new home in Yelm, Wash., will expire at the end of the week. They've lined up a no-money-down loan through the Department of Veterans Affairs, but the Browns haven't been able to sell the town house they live in, so they will have to back out and lose their $1,000 deposit."

The San Diego Union Tribune - "Trade group seeks break for state's home buyers" (8-17-07)

"As the nationwide credit crunch continued to shake Wall Street and the lending industry yesterday, the California Association of Mortgage Brokers urged Congress to give a financial break to the state's home buyers. Leaders of the trade group asked federal lawmakers to declare California a 'high-cost' state and raise the limit on the size of loans that can be purchased or guaranteed by Fannie Mae and Freddie Mac."

Bloomberg - "Bear Stearns Cuts Mortgage Jobs as Share Advance Signals Rescue" (8-17-07)

"Bear Stearns Cos. moved to cut jobs at two home-lending units because of the housing slump even as a 13 percent increase in shares of the fifth-largest U.S. securities firm signaled that it may be close to getting a cash infusion from an investor. Encore Credit, a Bear Stearns subsidiary in Irvine, California, will eliminate 100 positions, a person with direct knowledge of the matter said yesterday. Bear Stearns Residential Mortgage Corp., based in Scottsdale, Arizona, is reducing its workforce by 140, according to the person, who declined to be named because the number of jobs isn't being made public."

NAHB - "Housing Starts Continue Downward In July" (8-16-07)

"Providing further evidence that the downward correction in the housing market continues, Commerce Department data released today for July indicates that home builders started work on new housing units that month at the slowest pace since January 1997. The government report indicated that total housing starts declined 6.1 percent to a seasonally adjusted annual rate of 1.38 million units in July."

NAR - "Realtor® Award Finalists Are Good Neighbors" (8-16-07)

"Realtors® across the country work hard to give back to their communities, often donating countless hours and dollars to organizations that offer extra help to those in need. The National Association of Realtors® today announced 10 such individuals as finalists for REALTOR® Magazine’s 2007 Good Neighbor Awards. The Good Neighbor Awards program, now in its eighth year, recognizes Realtors® who volunteer countless hours to improve the quality of life for others. This year there were more than 320 entries—an all-time high."

CBIA - "California New Home Sales in June Fall 26% from June 2006, CBIA Announces" (8-16-07)

"June sales levels at California’s major new-home communities continue to lag behind last year’s pace, the California Building Industry Association reported today. The monthly CBIA/Hanley Wood Market Intelligence New Home Sales and Pricing Report showed that sales in June were 26.2 percent below June 2006, continuing a trend that has occurred since the beginning of the year. For the month, 5,585 homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based Hanley Wood Market Intelligence, compared to 7,565 in June 2006. Sales of single family homes dropped by 16.6 percent, sales of townhomes and 'plexes' – duplexes, triplexes, etc. – were down 25.4 percent and sales of condominiums were down 55.3 percent. A large portion of that decline, however, came from the cancellation of a large condo tower complex in downtown Sacramento."

NAR - "Realtors®: NAR Wants You To Show Your Face in the Centennial Celebration" (8-16-07)

"As the National Association of Realtors® approaches its centennial year in 2008, Realtors® are invited to become a part of history by submitting photos of themselves for a new campaign, 'The Face of Real Estate for 100 Years.' The campaign was announced today at NAR’s 2007 Leadership Summit, during which NAR leaders meet with their counterparts from state and local Realtor® associations to discuss industry issues, priorities and goals."

The Washington Post - "Approved Home Loans No Longer Done Deals" (8-16-07)

"'There will be deals that fall through,' Cecala said. 'It's not easy to transfer a loan and all that paperwork. And it's not that easy for one lender to take the other lender's word for everything. In cases, if a lender has gone bankrupt, a lot of people won't want to touch their loans because they think there's shoddy underwriting involved.'"

Reuters - "Global stocks dive as U.S. bonds jump" (8-16-07)

"Fears that tighter credit in the U.S. subprime housing sector will choke off growth in other sectors sent stock markets around the world sharply lower on Thursday while government bonds rallied in a flight to safety. The yen soared against all of the major currencies as investors unwound risky trades financed with borrowed yen."

CNN - "Countrywide forced to turn to banks for help" (8-16-07)

"Embattled Countrywide Financial, the nation's No. 1 mortgage lender, was forced to tap an $11.5 billion line of credit Thursday to run its business during the credit crunch, and said it's toughening underwriting standards on home loans. At the same time, SEC filings show the company's chairman has made a $13 million profit in the past month selling Countrywide stock on the decline."

Bloomberg - "U.S. Housing Starts Dropped 6.1% to 1.381 Million Pace in July" (8-16-07)

"Builders in the U.S. started work on the fewest homes in a decade in July as the industry showed no sign of recovering from the 18-month recession. The greater-than-forecast 6.1 percent decrease to an annual rate of 1.381 million, followed a 1.47 million pace in June, the Commerce Department said today in Washington. Building permits also fell to a 10-year low."

Bloomberg - "Hedge-Fund Guy Atones for His Subprime Bond Sins: Mark Gilbert" (8-16-07)

"Dear investor, we'd like to take this opportunity to update you on the recent performance of our hedge fund, Short-Term Capital Mismanagement LLP. As you know, market selection for the entire fund is guided by a proprietary investing tool we like to call 'a dartboard.' Once the asset classes are decided, individual security selections are generated by digitizing our unique hexagonal cuboid models."

Yahoo - "Credit Anxiety, Countrywide Panic" (8-16-07)

"Stocks around the world continued to slide this morning on the U.S. subprime mortgage mess. (MarketWatch) U.S. Treasury Secretary Henry Paulson conceded that the current turmoil in the market 'will extract a penalty' on U.S. growth, but said the economy was strong enough to avoid a recession. (CNNMoney.com) Meanwhile, St. Louis Fed President William Poole said that only a 'calamity' would justify an interest rate cut, further depressing investor sentiment. (AP in Yahoo! Finance) 'Blood is hitting the streets,' said Patrick Chang of CIMB-Principal Asset Management. 'Everyone seems to be panicking, and there's reason to panic.' (Los Angeles Times, free registration required)"

Yahoo - "Fed's Poole says no need for emergency rate cut" (8-16-07)

"St. Louis Federal Reserve Bank President William Poole said on Wednesday financial market turmoil had not undermined the U.S. economy and there was no need for the central bank to ride to the rescue with an emergency rate cut. 'It's premature to say that this upset in the market is changing the course of the economy in any fundamental way,' he said in an interview with Bloomberg. 'Obviously, there could be an impact, but we have to rely on some real evidence.'"

FXStreet.com - "Fannie Mae predicts continued mortgage defaults through 2008 UPDATE" (8-16-07)

"Mortgage giant Fannie Mae said it expects continued mortgage defaults into next year will increase its credit losses to its historical average of 0.04-0.06 pct in 2007, and possibly higher in 2008. 'Downward pressure on home prices in 2006, particularly in parts of the Midwest, led to an increase in credit losses,' Fannie Mae president and CEO Daniel Mudd said in a statement. In a phone call today, Mudd added losses could hit the historical average this year, although Fannie's credit losses through 2007 are only 0.027 pct so far."

Bloomberg - "Countrywide Taps $11.5 Billion Credit Line From Banks" (8-16-07)

"Countrywide Financial Corp., the biggest U.S. mortgage lender, borrowed the entire $11.5 billion available in bank credit lines as the global financial crisis curbed access to short-term financing. Countrywide turned to the emergency loan, which it said was provided by a group of 40 banks, a day after Merrill Lynch & Co. raised the prospect of bankruptcy for the Calabasas, California- based lender. Australia's Rams Home Loans Group Ltd. and Canada's Coventree Inc. also sought emergency funding today."

Bloomberg - "Moody's Warns of Potential LTCM-Scale Fund Collapse" (8-16-07)

"Moody's Investors Service fueled concern that the global credit crisis is worsening by speculating that a hedge fund collapse on the same scale as Long-Term Capital Management LP in 1998 is possible. Hedge funds face potential losses on collateralized debt obligations, securities packaging bonds, loans and other assets, Chris Mahoney, vice chairman of Moody's, said on a conference call today. The funds are unable to agree on prices to sell riskier assets, causing the market to seize up, Mahoney said."

Bloomberg - "H&R Block CEO Says Breeden Sent `Misleading' Message" (8-16-07)

"H&R Block Inc., the U.S. tax preparer facing shareholder pressure to boost performance, said a hedge fund led by Richard Breeden sent investors a 'misleading' message as part of his bid to gain seats on the company's board."

Bloomberg - "Fidelity, Franklin Hit as Real Estate Funds Lose $13 Billion" (8-16-07)

"Fidelity Investments, Franklin Resources Inc. and Kensington Investment Group Inc. are the biggest losers in a decline by U.S. real estate funds that wiped out $13 billion in the past three months. Property funds, the best performers in 2006, slumped 16 percent since May 14, the most of any category tracked by research firm Morningstar Inc. in Chicago. The $5.9 billion Fidelity Real Estate Investment Portfolio, the largest among the group, fell 19.7 percent. The $718 million Franklin Real Estate Securities Fund and the $500 million Kensington Strategic Realty Fund each dropped 20.3 percent, the most among actively managed property funds with more than $100 million in assets."

Forbes - "Countrywide Borrows $11.5B From 40 Banks" (8-16-07)

"The nation's largest mortgage lender borrowed $11.5 billion from a group of 40 banks to fund loans, in a move that shows just how deep the lending crisis has become. Countrywide Financial Corp. said Thursday it made the move amid a credit crunch that has driven a number of its smaller peers to bankruptcy. Shares opened down more than 12 percent."

Los Angeles Times - "Bay Area home sales drop 12%" (8-16-07)

"July home sales in a nine-county swath around San Francisco Bay dropped 12% from the same period last year, but median prices remain stable, a real estate research firm said Wednesday. In all, 7,423 new and resale homes were sold last month in Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma counties, DataQuick Information Systems said."

NAHB - "Credit Tightening Weighing On Builder Confidence In August" (8-15-07)

"Highly visible problems in the housing finance system are contributing to a wait-and-see attitude among prospective home buyers and reducing builder confidence in the single-family housing market, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI declined two points to 22 in August, its lowest level since January 1991."

NAR - "Second-Quarter Metro Homes Prices Improving But Sales Down in Most States" (8-15-07)

"Home price trends are improving in metropolitan areas but existing-home sales during the second quarter were below a year ago in most states, according to the latest quarterly survey by the National Association of Realtors. In the second quarter, 97 out of 149 metropolitan statistical areas 1 show year-over-year increases in median existing single-family home prices, including nine areas with double-digit annual gains; 50 had price declines; and two were unchanged. In the first quarter of 2007, revised data shows 83 areas had annual price increases, while in the fourth quarter of 2006 only 68 areas were up."

MBA - "Mortgage Applications Increase in Latest MBA Weekly Survey" (8-15-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 10, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 678.7, an increase of 3.4 percent on a seasonally adjusted basis from 656.5 one week earlier. On an unadjusted basis, the Index increased 2.7 percent compared with the previous week and was up 20.6 percent compared with the same week one year earlier. The Refinance Index increased 2.6 percent to 1929.6 from 1881.1 the previous week and the seasonally adjusted Purchase Index increased 3.9 percent to 464.9 from 447.4 one week earlier. On an unadjusted basis, the Purchase Index increased 2.8 percent to 500.4 from 486.9 the previous week. The seasonally adjusted Conventional Index increased 3.1 percent to 987.9 from 958.5 the previous week, and the seasonally adjusted Government Index increased 6.7 percent to 163.2 from 152.9 the previous week."

The Washington Post - "Retailers Fret That Credit Crunch Will Sap Spending" (8-15-07)

"Stocks tumbled Tuesday after Wal-Mart and Home Depot cautioned that the housing slump and weak consumer spending would depress earnings, raising doubts about the strength of the U.S. economy. The retailers released earnings reports at a time when jittery investors were watching the credit market for clues about how much more pain the mortgage industry might unleash."

Bloomberg - "Basis Capital Tells Investors Loss May Exceed 80%" (8-15-07)

"Basis Capital Fund Management Ltd. told investors losses at one of its hedge funds may exceed 80 percent as the U.S. subprime mortgage rout prompted creditors to force the Sydney-based company to sell assets. Basis Capital is unable to 'accurately estimate' the value of units in its Yield Fund, the hedge fund said today in a letter sent to investors and obtained by Bloomberg News. The losses have worsened since a month ago, when it said the fund may decline more than 50 percent. The firm managed $1 billion in March."

Market Watch - "Fund managers still positive on equities - survey" (8-15-07)

"Fund managers remain relatively positive about the prospects for global equity markets, even after the recent market downturn, according to Merrill Lynch's monthly fund manager survey for August. 'Fund managers have turned more risk adverse but still believe equities offer value, particularly relative to bonds,' the survey said. The recent equity market correction around the globe has been largely driven by investors assessing the ongoing fall out from the recent subprime mortgage market woes in the U.S. and its impact on the credit markets."

Market Watch - "Redemption songs" (8-15-07)

"Everything's funny when you're making money. For select fund managers around the street, it might be a while before they smile. Today is redemption day for funds with a 45-day advance notice redemption window. What that means in plain English is that well-heeled hedge fund investors, many of whom are watching in horror as the smartest money in the Street takes a beating, will have the chance to leave the dance."

Yahoo - "Existing Home Sales Fall in 41 States" (8-15-07)

"Sales of existing homes fell in 41 states during the April-June quarter while home prices were down in one-third of the metropolitan areas surveyed, a real estate trade group reported Wednesday. The new figures from the National Association of Realtors underscored the severity of the current housing slump, the worst downturn in 16 years. However, Realtors officials said they saw some glimmers of hope in the data. They noted that existing home prices were up in 97 of the 149 metropolitan areas surveyed compared with the sales prices of a year ago."

Bloomberg - "Corporate Bond Risk Rises as Bankruptcy, Default Fears Spread" (8-15-07)

"The risk of owning corporate bonds rose after a Merrill Lynch & Co. analyst said Countrywide Financial Corp., the biggest U.S. mortgage lender, may have to file for bankruptcy. Credit-default swaps on Countrywide widened after Merrill Lynch analyst Kenneth Bruce raised the possibility that a loss of access to short-term loan markets could force Countrywide into bankruptcy. Contract prices for mortgage lender Residential Capital LLC and for home-loan insurer Radian Group Inc. are also trading as if investors see a high probability of default."

Bloomberg - "Goldman Fund Cuts Fees to Woo Investors After Loss" (8-15-07)

"Goldman Sachs Group Inc. waived fees to draw investors to its Global Equity Opportunities hedge fund after stock-market losses wiped out $1.4 billion of assets this month, according to a person with direct knowledge of the terms. New participants won't pay the 2 percent management charge and Goldman will cut its performance fee in half, said the person, who declined to be named because the information is private. The New York-based firm and investors including billionaire Maurice 'Hank' Greenberg agreed to put $3 billion in the fund earlier this week. Goldman spokesman Lucas van Praag confirmed the terms and declined to comment further."

Bloomberg - "KKR Unit May Lose $290 Million on Mortgage Bond Sales" (8-15-07)

"KKR Financial Holdings LLC shares fell 31 percent after the debt investor said it may lose as much as $290 million because of a decline in the value of mortgage- backed bonds it owns. The company, a unit of Henry Kravis's buyout firm Kohlberg Kravis Roberts & Co., sold $5.1 billion in loans at a net loss of $40 million and plans to sell its $5.8 billion in remaining residential mortgage-backed securities. Disposing of those assets may lead to a writedown of $200 million in equity and 'additional liabilities' of as much as $50 million, San Francisco-based KKR Financial said today in a statement."

Bloomberg - "U.S. Home Sales Slump to Four-Year Low, Prices Fall" (8-15-07)

"U.S. home sales slumped to a four-year low and prices fell in a third of U.S. cities as turmoil in the mortgage market took its toll on housing, the National Association of Realtors said. Home sales, including single-family houses and condominiums, dropped in the second quarter to 5.91 million at an annualized pace, the lowest since the second quarter of 2003, led by declines in Florida and Nevada, the Chicago-based real estate trade group said in a report today. The median price for a single-family home fell in 50 of 149 metropolitan areas studied by the association."

Financial Times - "US banks refuse to accept subprime collateral" (8-15-07)

"US banks caught in the credit market upheaval have started refusing to lend money against hedge funds' subprime credit portfolios. Hedge funds said several banks in recent days had cut off lending to funds that use credit portfolios, including mortgages, collateralised debt obligations and subprime securities, as collateral. That leaves the highly leveraged funds heavily reliant on their prime brokers for borrowing."

Bloomberg - "At Mortgage Banks, `Going Concerns,' Going, Gone: Jonathan Weil" (8-15-07)

"You think your job is tough? Think about the poor schlimazels from Deloitte & Touche LLP who blessed the books at American Home Mortgage Investment Corp., mere months before it went belly up. The Deloitte accountants faced a crucial decision as they finished their audit work in March. Deloitte could resign and walk away. The firm could qualify its audit opinion by saying there was 'substantial doubt' about American Home's ability to continue as a 'going concern' through the end of the year -- as many short sellers already had concluded. Or it could give the company a clean opinion, expressing no doubt, which is what Deloitte did."

Los Angeles Times - "Southland home sales hit 12-year low" (8-15-07)

"Would-be home buyers in Southern California continued to sit on the sidelines last month, driving down home sales to their slowest pace in 12 years and pushing down prices in the region's less-expensive neighborhoods, data released Tuesday showed. Yet even as home sales fell 27% regionwide, the median price of all homes sold in the Southland's six counties rose 3.7%, to $505,000, in July compared to a year ago, thanks to more robust sales at the upper end of the market, according to real estate research firm DataQuick Information Systems."

MBA - "Federal Regulators Propose Illustrations of Consumer Information to Support Their Statement on Subprime Mortgage Lending" (8-14-07)

"The federal financial regulatory agencies today issued proposed illustrations of consumer information for certain adjustable-rate mortgage (ARM) products described in the agencies’ Statement on Subprime Mortgage Lending (Subprime Statement), effective July 10, 2007. The Subprime Statement recommends communications that ensure consumers have clear, balanced, and timely information about the relative benefits and risks of certain ARM products. The illustrations are intended to assist institutions in providing this information."

MBA - "MBA Calls on OFHEO to Allow GSEs More Room to Help Markets" (8-14-07)

"The Mortgage Bankers Association (MBA), the National Association of Home Builders (NAHB) and the National Association of Realtors (NAR) today sent a letter to the Office of Federal Housing Enterprise Oversight (OFHEO) urging them to take action to temporarily increase the caps on the investment portfolios of Fannie Mae and Freddie Mac (the GSEs), with appropriate controls, to help inject needed liquidity and stability into the mortgage market."

MBA - "Jan Sternin Joins MBA as Senior Vice President of Commercial/Multifamily" (8-14-07)

"The Mortgage Bankers Association (MBA) announced the appointment of Jan Sternin as Senior Vice President of Commercial/Multifamily. In her new role, Jan will manage the Commercial/Multifamily Group as it serves the needs of the Association's members engaged in commercial/multifamily real estate finance. These needs are met through coordination of education, communication, lobbying, and research activities, in concert with other business groups. She will be directly responsible for the development and implementation of regulatory policy, best practices and industry standards for the commercial/multifamily sector and will serve as the communication conduit to MBA's commercial/multifamily membership. Jan assumes the position previously held by Gail Davis Cardwell."

Yahoo - "Foreclosures: Hardest hit ZIP codes" (8-14-07)

"For sheer volume, housing foreclosures across the nation appear to be moving from the Rust Belt to the Sun Belt. A study for CNNMoney.com by RealtyTrac, an online marketer of foreclosure properties, showed that 139 of California's ZIP codes fell within the top 500 for total foreclosure filings in the United States. The next highest count for any state is less than half that at 72 and is in another sun-belt state - Florida."

Orange County Register - "O.C. home-buying slump equals '89-'91 decline" (8-14-07)

"The streak goes on. DataQuick reports today that July marked the 22nd straight month that O.C. home shoppers bought fewer homes than the year-ago period. (O.C. buyers snapped up 2,391 local homes in July, or 43.5% below the 20-year average!) This selling slump ties a similar streak from July 1989 to March 1991 for the longest sales drought in the 20 years of DataQuick sales figures. As for prices, last month's median was unchanged from July 2006 at $640,000. In mid-July, the median price had flirted with besting the full-month record high of $645,000 set in June."

Los Angeles Times - "Southland home sales slow again, but prices are steady" (8-14-07)

"Would-be home buyers continued to sit on the sidelines last month, driving down Southern California home sales to their lowest pace in 12 years and pressing down prices in the region's less-expensive neighborhoods, data released today showed. Yet even as home sales fell 27% regionwide, the median price of all homes sold in the Southland's six counties rose 3.7%, to $505,000, in July compared to a year ago, thanks to more robust sales at the high-end of the market, according to real estate research firm DataQuick Information Systems."

Real Estate Journal - "Late on Your Mortgage? How to Keep Your Home" (8-14-07)

"As a growing number of borrowers fall behind on their mortgage payments, the smartest move they can make is to contact their lender, mortgage-industry experts and consumer advocates say. These days, there's more incentive for companies to work with borrowers to avoid foreclosure: Regulators and lawmakers, prompted by troubles in the mortgage market, are encouraging companies to assist troubled borrowers."

Bloomberg - "ECB Adds Cash for Third Day, Says Market Normalizing" (8-13-07)

"The European Central Bank lent emergency money to banks for a third day, while paring the amount and declaring that markets are returning to normal. The ECB loaned 47.7 billion euros ($65 billion) to banks, down from 61.05 billion euros on Aug. 10. The U.S. Federal Reserve, the Bank of Japan and Australia's central bank today resumed normal refinancing operations and refrained from providing extra funds."

MSNBC - "High-risk mortgages turning into toxic mess" (8-13-07)

"When Linda Martin refinanced the mortgages on three different houses nearly three years ago, she thought the lower monthly payments would help her save more money for retirement. Instead, the Lakewood, Colo. skin-care specialist is sinking in financial quicksand amid a widening mortgage morass that’s pulling down home prices and threatening to drag the U.S. economy into a recession."

Houston Chronicle - "Goldman Hedge Fund Gets $3B Bailout" (8-13-07)

"Goldman Sachs Group said Monday it is leading a group of investors that includes Maurice 'Hank' Greenberg and Eli Broad, sinking $3 billion into one of its biggest hedge funds which has seen its value plunge amid market volatility. The investment bank said its Global Equity Opportunities fund 'suffered significantly' as global markets sold off on worries about debt and credit. The fund lost about 28 percent in the past few weeks, dragging its value down to $3.6 billion, from about $5 billion last month."

Bloomberg - "Accredited Shares Fall After Lone Star Backs Away" (8-13-07)

"Accredited Home Lenders Holding Co. shares fell as much as 35 percent after buyout firm Lone Star Funds said it wouldn't go through with its planned $400 million purchase of the subprime mortgage lender. Accredited said today it's suing to force Lone Star to honor the agreement."

CNN - "Dems take on mortgage meltdown" (8-13-07)

"In the wake of the subprime mess, Democratic presidential candidates are grabbing hold of the issue and offering their own solutions. And the problem, according to many of them, lies with the mortgage broker. Sen. Barack Obama has introduced legislation targeting fraud and predatory lending. John Edwards, the former senator from North Carolina, has said he wants to ban certain fees, establish uniform broker licensing standards and start a national database for disciplinary infractions."

Los Angeles Times - "Credit fears may curb home sales" (8-13-07)

"The earthquake that jolted world credit markets last week is roiling Southern California's real estate market. August could wind up as one of the worst months on record for the region's home sales as the market faces a double whammy. Not only is the pool of available mortgage money and other loans shrinking, but consumer anxiety about the real estate market in general is mounting."

Orange County Register - "Foreclosures, short sales now 5% of O.C. home inventory" (8-13-07)

"The number of O.C. homes for sale nears its peak for the year, says Steve Thomas at Re/Max Real Estate Services in Aliso Viejo. Thomas calculates 'market time,' a benchmark of how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. By this Thomas logic, it would take 9.76 months for buyers to gobble up all homes listed for sale at the current pace of deals vs. 9.66 months two weeks earlier and vs. 7.04 months a year ago."

The Herald Tribune - "The no-risk models that weren't" (8-12-07)

"For something that everybody assured us was 'contained,' the subprime mortgage mess certainly has spread. Last week, the hemorrhaging credit markets bled right into the stock market. The major indexes are still up for the year, thankfully, but the Dow Jones industrial average, which hit 14,000 just three weeks ago, has lost 5.4 percent of its value since then. And the Standard & Poor's 500 is down 6.4 percent from its July peak."

The Herald Tribune - "How the gears jammed in the housing machine" (8-12-07)

"When an investment banker set out in July to buy a $1.5 million home on Long Island, his mortgage broker quoted an interest rate of 8 percent. Three days later, when the buyer said he would take the loan, the mortgage banker had bad news: the new rate was 13 percent. 'I have been in the business 20 years, and I have never seen' such a big swing in interest rates, said the broker, Bob Moulton, president of the Americana Mortgage Group in Manhasset, New York. 'There is a lot of fear in the markets. When there is fear, people have a tendency to overreact.'"

The Washington Post - "High-Risk Mortgages Become Toxic Mess" (8-11-07)

"When Linda Martin refinanced the mortgages on three different houses nearly three years ago, she thought the lower monthly payments would help her save more money for retirement. Instead, the Lakewood, Colo. skin-care specialist is sinking in financial quicksand amid a widening mortgage morass that's pulling down home prices and threatening to drag the U.S. economy into a recession."

The Washington Post - "Bubble and Bust" (8-11-07)

"BY THE HEIGHT of the 17th-century Dutch tulip mania, bulbs were selling for the equivalent of up to $76,000 apiece, and tulip options were trading on markets across Europe. The ensuing crash crippled the Dutch economy for years, establishing a cautionary model of speculative excess that investors have learned from, and ignored, in a seemingly endless cycle of bubble and bust ever since."

The Charlotte Observer - "Beazer: Mistakes possible in filings" (8-11-07)

"Troubled homebuilder Beazer Homes USA may have understated expenses in past filings with securities regulators, the company said Friday. The Atlanta homebuilder blamed its former chief accounting officer, saying he may have 'caused' the wrong numbers to be reported. The disclosure may deepen concern about Beazer's financial health. The company already faces a federal criminal investigation of its mortgage practices, and a formal inquiry on unspecified issues by the Securities and Exchange Commission."

CounterCurrents.org - "Subprime Or Subcrime? Time To Investigate And Prosecute" (8-11-07)

"There comes a time when the frame of a news story changes. It happened in Iraq when the 'war for Iraqi freedom' became seen as a bloody occupation, not a beneficent liberation. It is happening as the war on terror is increasingly perceived a war of error and when voting problems are reframed as electoral fraud."

Bloomberg - "Bernanke Was Wrong: Subprime Contagion Is Spreading" (8-10-07)

"Federal Reserve Chairman Ben S. Bernanke was wrong. So were U.S. Treasury Secretary Henry Paulson and Merrill Lynch & Co. Chief Executive Officer Stanley O'Neal. The subprime mortgage industry's problems were contained, they all said. It turns out that the turmoil was contagious."

CNN - "Countrywide: Secondary Mortage Market Conditions 'unprecedented'" (8-10-07)

"Countrywide Financial Corp., the largest U.S. mortgage lender, said Thursday that 'unprecedented' poor conditions in the secondary-mortgage market are causing it to retain a greater proportion of mortgage loans than it sells. In a filing with the Securities and Exchange Commission, Countrywide said that while it plans to retain more loans until investor demand improves, it warned that a prolonged period of poor conditions could have an adverse impact on our future earnings and financial condition."

Yahoo - "ECB, Fed Inject Cash to Ease Fears" (8-10-07)

"Central banks around the world injected more cash into the international banking system Friday as problems that began with U.S. subprime mortgages rattle the global economy. The ECB injected a further 61 billion euros ($83.8 billion) Friday morning, while the U.S. Federal Reserve later announced a three-day repurchase agreement to inject liquidity into the market."

Bloomberg - "U.S. Stocks Drop on Credit Concern; Countrywide, GE Shares Fall" (8-10-07)

"U.S. stocks dropped for a second day, following European and Asian markets lower on concern the credit crunch will hamper growth in the world's biggest economy. Countrywide Financial Corp., the largest U.S. mortgage lender, helped lead a retreat in financial shares after saying investor demand for its loans has dried up. General Electric Co., the world's second-biggest company by market value, posted its largest two-day decline in four years amid speculation higher financing costs will reduce global demand."

CNN - "Rate jump for big mortgages" (8-10-07)

"Don't look now but the cost of financing a home purchase in some of the nation's priciest areas just got more expensive. Wells Fargo, one of the nation's biggest mortgage lenders, raised the interest rates on its 30-year, fixed-rate, non-conforming (AKA jumbo) loan to 8 percent last week, up from 6.875 percent for loans made through mortgage brokers. Wednesday, they stood at 7.875 percent. (See correction below) Other lenders followed suit and more are likely to join them."

Bloomberg - "Fed Adds $35 Bln in Funds, Most Since September 2001" (8-10-07)

"The Federal Reserve added $35 billion in temporary funds to the banking system through the purchase of securities including mortgage-backed debt to meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers."

Bloomberg - "Central Banks Add Cash to Avert Crisis of Confidence" (8-10-07)

"Central banks in the U.S., Europe, Japan, Australia and Canada added about $132.7 billion to the banking system in an attempt to avert a crisis of confidence in global credit markets. The Federal Reserve, in a second day of action in concert with the European Central Bank, provided $35 billion of reserves and pledged further funds 'as necessary,' in a statement unprecedented since the aftermath of the Sept. 11, 2001, attacks. The European Central Bank loaned 61.05 billion euros ($83.6 billion) after injecting a record amount yesterday."

Bloomberg - "Countrywide, Washington Mutual Fall on Mortgage Slump" (8-10-07)

"Countrywide Financial Corp., Washington Mutual Inc. and MGIC Investment Corp. led shares of U.S. mortgage companies lower as demand for loans and sources of new money dried up. Shares of Countrywide, the biggest U.S. mortgage lender, have lost a third of their value this year, wiping out $9.3 billion of market capitalization that took three years for the Calabasas, California-based company to generate. They fell as much as 14 percent today, the most since the 1987 market crash. Washington Mutual, the largest U.S. savings and loan, lost 2.2 percent and MGIC, the No. 1 mortgage insurer, fell 13 percent."

Bloomberg - "Gold, Silver Gain as Investors Seek Haven From Subprime Losses" (8-10-07)

"Gold and silver rose in New York as investors sought a haven from potential losses tied to the U.S. subprime-mortgage collapse. Stocks dropped in Europe and Asia after central banks around the world added billions of dollars to the global financial system to help meet demand for cash. Before today, gold had risen 5.5 percent this year after six annual gains."

The Washington Post - "Low-Risk Borrowers Now Feel Crunch" (8-10-07)

"Nicholas Schor and Liza Losada-Schor were ready and willing to spend up to $850,000 on a house in Maryland. That was a month ago, when the rate on their mortgage would have been as low as 6.25 percent. But a sudden shift in the mortgage market means that the couple -- he's a psychiatrist, she's a clinical nurse psychotherapist -- now face a rate of more than 7 percent, reducing their buying power even though they have solid credit. That's because in the past few days, rates on loans for more than $417,000, known as jumbo loans, have shot up."

Market Watch - "CORRECT: Goldman hedge funds suffer losses" (8-9-07)

"Two Goldman Sachs hedge funds have suffered losses in recent weeks, but the investment bank is keeping them open, a person familiar with the situation said on Thursday. The North American Equity Opportunities fund has sold some of its positions recently after losses, the person said, speaking on condition of anonymity. Losses suffered by Goldman's largest hedge fund, the $9 billion Global Alpha fund, have sparked concerns that it could close. Such speculation has roiled markets in recent days, triggering losses among other hedge funds that use similar strategies."

Market Watch - "$43 billion in loan deals pulled in past two weeks" (8-9-07)

"In the past two weeks, another 13 corporate loan or bond deals have been postponed or reduced, representing slightly less than $43 billion, according to research released Thursday by Baring Asset Management. That raises the total number of financing deals pulled from the market since June 22 to 46, representing more than $60 billion, analysts at the firm said. No deals were pulled last year, according to the firm. Toby Nangle, a fixed-income manager at Barings, estimated that banks financing leveraged buyouts and management-led buyouts have been left with an estimated $400 billion on their balance sheets."

CNN - "Dow sees 2nd worst day of '07" (8-9-07)

"Stock slumped Thursday, with the Dow suffering its second worst session of the year as worries about the global credit market sparked a broad selloff in equities, following a three-session rally. Bond prices rose as jittery investors dumped stocks in favor of the so-called safer haven of Treasurys. The Dow Jones industrial average (down 387.18 to 13,270.68, Charts) tumbled 387 points, or 2.8 percent, its biggest one-day point and percentage loss since Feb. 27, when it plunged 416 points on worries about a global growth slowdown."

CNN - "Subprime problems spread" (8-9-07)

"Another rough day on the subprime front. AIG, the world's largest insurer and one of the biggest mortgage lenders, said residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime. France's biggest listed bank, BNP Paribas, froze $2.2 billion worth of funds, citing subprime woes. And the European Central Bank felt it had to inject $130.5 billion into euro-zone money markets to help calm jittery markets."

Orange County Register - "Housing forecast worsens amid market's slump" (8-9-07)

"Home sales will hit a five-year low this year, as wary lenders cut back on loans for many borrowers, a trade group for real estate agents said Wednesday. The National Association of Realtors' revised forecast calls for existing home sales of 6.04 million in 2007, down 6.8 percent from last year. The forecast was 1 percent lower, or 70,000 fewer homes, than July's prediction of 6.11 million. This year's sales would be the lowest since 2002, when sales hit 5.63 million. Last year's sales were 6.48 million."

Los Angeles Times - "Worries over U.S. housing market grow" (8-9-07)

"Anxiety over the housing slump kicked up a notch Wednesday, as two key industry players signaled that home sales would weaken further this year because the widening credit crunch is reducing the number of buyers who can qualify for a mortgage. The National Assn. of Realtors, a trade group that has tried to couch the slumping housing market in the best possible terms, cited the recent turbulence in the mortgage market as it lowered its outlook for home sales for the eighth time this year."

Los Angeles Times - "Experts, residents unsure of new downtown rules' effect" (8-9-07)

"By significantly altering downtown zoning rules in a bid to spur more housing development, Los Angeles is gambling that it can ease its notorious housing crunch without causing bigger problems. In the last three months, the city has taken two dramatic steps to further accelerate downtown's boom in residential construction."

CNN - "Mortgage defaults growing" (8-9-07)

"Another rough day on the subprime front. AIG, the world's largest insurer and one of the biggest mortgage lenders, said residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime. France's biggest listed bank, BNP Paribas, froze $2.2 billion worth of funds, citing subprime woes. And the European Central Bank felt it had to inject $130.5 billion into euro-zone money markets to help calm jittery markets."

Bloomberg - "U.S. Stocks Tumble on Credit Concerns; Banks, Brokers Retreat" (8-9-07)

"U.S. stocks tumbled as subprime mortgage contagion and hedge fund losses halted a three-day rally and sent brokerage shares to their worst rout since 2002. 'The fear is feeding on itself,' said Jeffrey Kleintop, who helps oversee more than $173 billion as chief market strategist at LPL Financial Services in Boston. 'It's what you don't know that seems to be taking over the market.'"

Telegraph.co.uk - "China threatens 'nuclear option' of dollar sales" (8-8-07)

"The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation. Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress."

Bloomberg - "Subprime `Tsunami' Hits Asset-Backed Commercial Paper Market" (8-8-07)

"Companies are extending payments on commercial paper backed by home loans for the first time as the subprime mortgage crisis spreads to debt perceived to be among the safest in the market, according to Moody's Investors Service. Units of American Home Mortgage Investment Corp., the residential-mortgage lender that filed for bankruptcy, Luminent Mortgage Capital Inc., facing margin calls from lenders, and Aladdin Capital Management LLC, this week exercised an option allowing them to delay repaying the debt, Moody's said."

Bloomberg - "HUD Says Fannie, Freddie Asset Limits May Be Raised" (8-8-07)

"U.S. Housing and Urban Development Secretary Alphonso Jackson said the government is considering raising the limit on home loan purchases by Fannie Mae and Freddie Mac to ease a credit crunch in the mortgage market. Jackson said today that he talked with Fannie Mae Chief Executive Officer Daniel Mudd and may reply tomorrow to his request that the government-chartered company be allowed to buy home loans beyond its $722.5 billion federal limit. Fannie Mae and Freddie Mac would help replace buyers who fled mortgage assets after defaults on subprime loans rose to the highest in 10 years."

MBA - "Mortgage Applications Increase in Latest MBA Weekly Survey" (8-8-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 3, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 656.5, an increase of 8.1 percent on a seasonally adjusted basis from 607.1 one week earlier. On an unadjusted basis, the Index increased 7.7 percent compared with the previous week and was up 18.0 percent compared with the same week one year earlier. The Refinance Index increased 9.1 percent to 1881.1 from 1724.1 the previous week and the seasonally adjusted Purchase Index increased 7.4 percent to 447.4 from 416.6 one week earlier. On an unadjusted basis, the Purchase Index increased 6.8 percent to 486.9 from 455.7 the previous week. The seasonally adjusted Conventional Index increased 8.0 percent to 958.5 from 887.2 the previous week, and the seasonally adjusted Government Index increased 9.3 percent to 152.9 from 139.9 the previous week."

NAR - "Near-Term Home Sales to Hold in Modest Range" (8-7-07)

"The housing market will probably hold close to present levels in the months ahead, according to the latest forecast by the National Association of Realtors®. Lawrence Yun, NAR senior economist, said he isn’t looking for any notable changes in sales activity. 'Existing-home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines,' he said. 'Mortgage disruptions will hold back sales over the short term, but long-term fundamentals are favorable. A modest upturn is projected for existing-home sales toward the end of the year, with broader improvement to include the new-home market by the middle of 2008.'"

Bloomberg - "U.S. Stocks Rise for a Third Day, Led by Banks; Merrill Gains" (8-8-07)

"U.S. stocks rose for a third day on diminishing concern that subprime mortgage losses will hurt earnings at homebuilders and financial companies and after Cisco Systems Inc. increased its sales forecast. Merrill Lynch & Co. and Morgan Stanley led financial companies to the top gain in the Standard & Poor's 500 Index after a Citigroup Inc. analyst recommended buying the shares. Pulte Homes Inc. and D.R. Horton Inc. helped push a gauge of construction companies to its biggest advance since November. Cisco Systems Inc., the world's largest maker of computer- networking gear, climbed to a six-year high after saying demand for Internet gear increased."

Bloomberg - "`Mortgage Disruptions' Will Deepen U.S. Housing Slump" (8-8-07)

"U.S. home sales will tumble to a five-year low this year as a widening credit crunch reduces the number of buyers who can get mortgages, the National Association of Realtors said today. Sales of previously owned homes probably will fall 6.8 percent to 6.04 million in 2007, the lowest since 5.63 million in 2002, the real estate trade group said today in its monthly forecast, lowering its outlook for the eighth time this year. New-home sales, which account for about 15 percent of the housing market, probably will fall 19 percent to 852,000, a 10- year low, the group said."

Bloomberg - "U.K.'s Subprime Crisis May Be Worse Than U.S.'s: Matthew Lynn" (8-8-07)

"We are now all familiar with the damage that can be done to financial markets by a subprime lending crisis. Global equity markets have taken a battering recently because of concerns about U.S. home mortgages. So which country is next? The U.K. has had a property bubble every bit as crazy as the U.S.'s. Valuations were stretched, and lending criteria loosened. And now arrears are starting to rocket, even while the economy remains healthy."

The Washington Post - "Fannie, Freddie Aim to Ease Mortgage-Market Crunch" (8-8-07)

"For Fannie Mae and Freddie Mac, the chronically embattled companies chartered by the government to make homeownership more attainable, the recent upheaval in the mortgage market presents financial and political opportunities. After accounting scandals and allegations that Fannie Mae in particular was run largely for the enrichment of its executives, even some longtime allies in Congress have demanded the companies to do more for the public good."

Real Estate Journal - "How Credit Got So Easy And Why It's Tightening" (8-8-07)

"An extraordinary credit boom that created many first-time homeowners and financed a wave of corporate takeovers seems to be waning. Home buyers with poor credit are having trouble borrowing. Institutional investors from Milwaukee to Düsseldorf to Sydney are reporting losses. Banks are stuck with corporate debt that investors won't buy. Stocks are on a roller coaster, with financial powerhouses like Bear Stearns Cos. and Blackstone Group coming under intense pressure."

NAR - "NAR Finds That Despite Rising Gas Prices, More Home Buyers Want Oversized Garages" (8-7-07)

"Home buyers in increasing numbers want garages with two or more spaces in their homes, according to the 2007 Profile of Buyers’ Home Feature Preferences, released today by the National Association of Realtors®.Since the last survey in 2004, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57 percent. Among buyers who purchased homes without this feature, 56 percent of them said they would have paid more for an oversize garage, compared to only 6 percent in the 2004 survey."

MBA - "MBA Responds to HUD's Porposed Standards for Mortgagor’s Investment in Mortgaged Property" (8-7-07)

"In May, HUD requested commennts to Standards for Mortgagor’s Investment in Mortgaged Property : Proposed Rule, 72 Federal Register 24 CFR PART 203 (May 11, 2007), Docket No. FR-5087-P-01. Specifically, the proposed rule would establish that a prohibited source of downpayment assistance is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale: (1) The seller, or any other person or entity that financially benefits from the transaction; or (2) any third party or entity that is reimbursed directly or indirectly by any of the parties listed in clause."

Realty Times - "Market Conditions" (8-7-07)

"With inventory increasing over the summer months, many sellers have resorted to price reductions in Nashville, Tennessee. The home of country music saw a 8.7 percent decrease in the number of closings for the second quarter of 2007. Year to date closings are down 6.2 percent. Median home prices have risen from $181,000 to $196,000 in the last year, with an average days on market of 65."

Realty Times - "Resale Market Shows Strongest Summer Performance" (8-7-07)

"Last month, the local resale market was 26 per cent more active than during the same time in 2006, recording a July record 8,912 sales, TREB President Donald Bentley announced. 'Currently, year-to-date transactions stand at 59,339, up 13 per cent over the first seven months of last year," Mr. Bentley said. "And with June and July both setting records, we are now seeing the strongest summer performance by our local resale market since records have been kept.'"

NAR - "NAR Finds That Despite Rising Gas Prices, More Home Buyers Want Oversized Garages" (8-7-07)

"Home buyers in increasing numbers want garages with two or more spaces in their homes, according to the 2007 Profile of Buyers’ Home Feature Preferences, released today by the National Association of Realtors®. Since the last survey in 2004, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57 percent. Among buyers who purchased homes without this feature, 56 percent of them said they would have paid more for an oversize garage, compared to only 6 percent in the 2004 survey."

The Miami Herald - "Walkaways increase at WCI condos" (8-7-07)

"WCI Communities said 17 percent of its inium buyers have walked away rather than close on new units this year, the latest indication of trouble in the condo market. That's higher than the 8 percent to 10 percent rate WCI predicted at the beginning of the year. With a record number of condo towers under construction and the housing market slumping, market watchers are keeping a close eye on how many buyers actually close on units they contracted to purchase. More cancellations mean more condos on the market, and more downward pressure on prices."

Orange County Register - "Speculation lowers shares of Standard Pacific" (8-7-07)

"Standard Pacific Corp. shares fell 13 percent Monday on speculation that the homebuilder's access to credit may be reduced, traders said. 'We're hearing they're about to violate bank covenants,' said Joseph Saluzzi, co-head of equity trading at Themis Trading LLC in Chatham, N.J. Irvine-based Standard Pacific said in a regulatory filing on Aug. 2 that it was in compliance with financial covenants for the six-month period ended June 30. Still, the company warned that it may violate some of covenants should it write down inventory or make additional investments in joint ventures."

The Washington Post - "Housing Market Pounding Fairfax" (8-7-07)

"Fairfax County officials are predicting that the budget shortfall for the coming year could hit $120 million because the slumping real estate market has led to the lowest annual revenue rate increase in 15 years. One casualty could be the school system, the nation's 13th largest. Members of the Board of Supervisors, many running for reelection this fall, said yesterday that the county's share of the school budget probably will not rise next year. The school system, which was given a 4 percent increase this year, has asked for 3 percent more next year."

Bloomberg - "Bear Stearns Caymans Filing May Hurt Funds' Creditors" (8-7-07)

"Bear Stearns Cos.' decision to liquidate two bankrupt hedge funds in the Cayman Islands instead of New York may limit creditors' and investors' ability to get their money back. While most of their assets are in New York, the funds filed for bankruptcy protection July 31 in a court in the Caymans, where they are incorporated. The bank also used a 2005 bankruptcy law to ask a U.S. judge in Manhattan to block all lawsuits against the funds and protect their U.S. assets during the Caymans proceedings."

Bloomberg - "Countrywide Buys Assets as HomeBanc, Impac Halt Loans" (8-7-07)

"Countrywide Financial Corp. and CIT Group Inc. said they'll be able to ride out the mortgage industry's credit crunch as two more rivals, HomeBanc Corp. and Impac Mortgage Holdings Inc., curtailed new loans. HomeBanc said it's selling assets to Countrywide after bankers cut off credit and left the Atlanta-based company unable to fund loans. Impac, based in Irvine, California, halted 'Alt- A' loans and fired some of its staff. CIT, which disclosed plans last month to leave the mortgage business, said it has access to a cash cushion of almost $15 billion."

Yahoo - "Clinton seeks aid for at-risk homeowners" (8-7-07)

"Presidential hopeful Hillary Rodham Clinton is calling for penalties on unscrupulous mortgage brokers who engage in predatory lending and a $1 billion federal fund to help homeowners avoid foreclosure. She also wants an increase in affordable housing options."

Yahoo - "S&P Puts Alt-A Bonds on Negative Watch" (8-7-07)

"Credit rating agency Standard & Poor's said Tuesday it placed 207 classes of mortgage-backed securities issued between Oct. 2005 and Dec. 2006 -- all underpinned by an intermediate type of loan -- on a negative rating watch. The 207 classes of securities, backed by "alt-A" loans, had an original balance of $913.9 million. That represents 0.2 percent of the approximately $455.4 billion in alt-A mortgage-backed securities S&P rated between Oct. 2005 and Dec. 2006."

Los Angeles Times - "Hillary's $1 billion foreclosure bailout" (8-7-07)

"Presidential hopeful Hillary Rodham Clinton is calling for penalties on unscrupulous mortgage brokers who engage in predatory lending and a $1 billion federal fund to help homeowners avoid foreclosure."

NAHB - "Remodeling Activity Declines In Second Quarter, Consistent With Overall Housing Downswing" (8-6-07)

"Remodeling activity slowed slightly in the second quarter of 2007, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The current market conditions component slipped from 46.1 to 44.8 on a seasonally adjusted basis and the future expectations measure declined by more than two points to 44.1. The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view the market conditions as improving."

Los Angeles Times - "Cramer: 'Bernanke has no idea!'" (8-6-07)

"'Bernanke needs to open the discount window. That's how bad things are out there ... Alan Greenspan told everybody to take a teaser rate and then raised the rates 17 times! And Bernanke is being an academic! It is no time to be an academic... He has no idea how bad it is out there. He has no idea! He has no idea! ... And Bill Poole (president of the Federal Reserve Bank of St. Louis)? Has no idea what it's like out there! My people have been in this game for 25 years. And they are losing their jobs and these firms are going to go out of business, and he's nuts! They're nuts! They know nothing! ... The Fed is asleep! Bill Poole is a shame! He's shameful!! ... We have Armageddon. In the fixed income markets, we have Armageddon ... We'll spend billions in Iraq to build homes. We are gonna have thousands of people -- we have thousands of people losing their homes right now. Fourteen million people took a mortgage in the last three years. Seven million of them took teaser rates or took piggy back rates. They will lose their homes. This is crazy!'"

Real Estate Journal - "Tightening Standards May Worsen Slump" (8-6-07)

"Jittery home-mortgage lenders are cutting off credit or raising interest rates for a growing portion of Americans, extending well beyond the market for subprime loans for people with the weakest credit records. This worsening credit crunch threatens to put further pressure on the housing market, where prices are flat to declining in much of the country."

The San Diego Union Tribune - "Foreclosure agents bask in bad times" (8-5-07)

"San Diego County's highflying housing boom is over, but real estate agents specializing in foreclosure sales say business hasn't been this good since the deep recession of the mid-1990s. As thousands of mortgage-default properties hit the market, prospective home buyers and investors are looking to cash in on other people's misfortunes."

Market Watch - "Western states went exotic with mortgages" (8-5-07)

"These states surpassed the national average last year for payment-option adjustable rate mortgages, the type of home loans that allow the borrower to minimize their monthly payments so they don't even cover the interest on the loan, a review of mortgage data show. California led the nation in originations of payment-option ARMs, with about 24% of all its refinanced and first mortgages falling into this category last year, according to data firm First American LoanPerformance."

The Washington Post - "No Money Down Disappearing as Mortgage Option" (8-5-07)

"Lenders faced with growing piles of bad loans, even to borrowers once considered good credit risks, have clamped down on the no-money-down mortgage. The abrupt shift threatens to dash the hopes of millions of potential buyers, especially those shopping for their first homes. Four out of 10 first-time buyers used no-down-payment mortgages in 2005 and 2006, according to surveys by the National Association of Realtors. But some lenders are now scrapping such loans completely. Others are pickier about who gets them. All figure that the more cash borrowers put down, the less likely they are to default."

St. Petersburg Times - "Jittery lenders raise rates" (8-4-07)

"Two months ago, with enough money for a 10 percent down payment, Satyajit Bhuyan approached Bank of America for a mortgage. The software consultant had all his paperwork in order, except for a $1,800 hiccup. A 2001 unresolved payment for an outpatient procedure at a Tampa hospital emerged like a ghost from the past, temporarily blocking his entry into his four-bedroom Tampa Palms home."

The San Diego Union Tribune - "Mortgage, credit worries push stocks, dollar lower" (8-4-07)

"Stocks tumbled yesterday on fears that the worsening ills in the mortgage and debt markets could soon take a significant toll on consumers, businesses and the overall economy. The latest decline capped a volatile two weeks on Wall Street in which the stock market has swung wildly from day to day, reflecting rising uncertainty about the outlook for markets and the risks plaguing the economy. The biggest moves lately have often occurred shortly before trading closed."

Bloomberg - "Union Investment Halts Redemptions From Bond Fund" (8-3-07)

"Union Investment Asset Management Holding AG, Germany's third-largest mutual fund manager, halted redemptions from a fund holding subprime mortgages after clients withdrew about 10 percent of the assets in the past month. Investors redeemed 100 million euros ($137 million) from the 950 million-euro ABS-Invest Fund, spokesman Markus Temme said today. The fund, sold to institutional investors across Europe, has about 6 percent of its assets in securities related to subprime mortgage loans, Temme said."

Bloomberg - "Bear Stearns Rating Outlook Cut on Mortgage Concern" (8-3-07)

"Bear Stearns Cos., the manager of two hedge funds that collapsed last month, had its credit-rating outlook cut to negative by Standard & Poor's on concern declining prices for mortgage-backed securities will reduce earnings. Shares of Bear Stearns fell 6 percent, bringing this year's decline to more than 33 percent. The perceived risk of owning the New York-based company's bonds rose to the highest in at least six years. Chief Executive Officer James E. Cayne said in a statement today that the company was 'solidly profitable' in June and July."

Bloomberg - "U.S. Housing Is Among `Biggest Bubbles,' Rogers Says" (8-3-07)

"The U.S. subprime-market rout that wiped out $2.1 trillion from global share values last week has 'got a long way to go,' said Jim Rogers, who predicted the start of the commodities rally in 1999. This week's rebound in equity markets hasn't persuaded Rogers, 64, to pull out of bets that U.S. investment banks and homebuilders are heading for further declines."

Yahoo - "At American Home, it's one last day at the office" (8-3-07)

"In some respects it was a normal summer Friday in this Long Island hamlet roughly 50 miles east of Wall Street. The weather was hot, a bit steamy. The weekend approached, and employees of American Home Mortgage Investment Corp. (NYSE:AHM - News) awaited their paychecks. What was different was that the checks would be their last. One day earlier the mortgage lender said it would fire nearly 7,000 employees, an exclamation mark to one of the biggest and fastest corporate collapses in the U.S. housing downturn. Friday would be the last day."

Yahoo - "Wall St tumbles on credit worries after Bear talks" (8-3-07)

"Stocks slid sharply on Friday after Bear Stearns said credit markets were in their worst shape in two decades, while jobs data aroused further concerns about weakness in the economy. Bear Stearns Cos. (NYSE:BSC - News) stock fell 6 percent after the comments from its chief financial officer, which exacerbated mortgage jitters and drove the three major indexes down more than 2 percent in a broad market sell-off."

Reuters - "S&P changes Bear outlook to negative; shares fall" (8-3-07)

"Standard & Poor's on Friday changed its rating outlook on Bear Stearns Cos. to negative from stable, indicating a greater chance of a downgrade over the next two years, as it warned of problems that could hurt the firm's performance 'for an extended period.' S&P said issues include problems at some of Bear Stearns' managed hedge funds."

Yahoo - "The State of the Slump" (8-3-07)

"Tighter credit is prolonging a deep slump in home sales, but a quarterly Wall Street Journal survey of 28 major metro areas shows that the surge in inventories of unsold homes is slowing. In two of those markets -- Boston and Denver -- the number listed for sale has actually declined from a year ago."

Bloomberg - "U.S. Housing Is Among `Biggest Bubbles,' Rogers Says" (8-3-07)

"The U.S. subprime-market rout that wiped out $2.1 trillion from global share values last week has 'got a long way to go,' said Jim Rogers, a New York-based fund manager who predicted the start of the commodities rally in 1999. This week's rebound in equity markets hasn't persuaded Rogers, 64, to pull out of bets that U.S. investment banks and homebuilders are heading for further declines."

Bull Not Bull - "Global Liquidity Defined" (8-3-07)

"Financial analysts and news reporters often refer to the concept of 'liquidity,' as though it were a magic wand. One touch and all ills are cured. Until recently, it was often heard that 'the world is awash in liquidity,' which was considered a good thing. More recently, the en vogue observation is that 'global liquidity is drying up,' which is spoken in ominous tones."

Los Angeles Times - "Brokers to Westside elite accused of fraud" (8-3-07)

"Two high-profile Beverly Hills real estate agents and two licensed appraisers were indicted Thursday on charges of joining in a sophisticated scheme that lenders said cost them more than $40 million in fraudulent loans for homes in some of Southern California's most expensive neighborhoods. Joseph Babajian and Kyle Grasso, agents with Prudential California Realty, along with appraisers Lila Rizk of Trabuco Canyon and Scott Robinson of Dana Point, were each indicted on multiple counts of conspiracy, bank fraud and loan fraud. They face several years in prison if convicted, said Assistant . U.S. Atty. Jeremy Matz. Babajian and Grasso are also charged with money laundering."

Real Estate Journal - "Foreign Buyers Scoop Up Real Estate in the U.S." (8-3-07)

"According to a new study by the National Association of Realtors, about one in five American real estate agents sold a second home in the year ending April 2007 to a foreign buyer, defined as someone who has legally entered the United States to buy a home. A quarter of the agents surveyed said their business with overseas buyers had increased over the past five years. Interest is up primarily because the weak dollar gives foreigners more buying power, but also because American home prices are low compared to places like Britain and Japan. 'A lot of them perceive the United States as a bargain,' says Ruth Krinke, a Steamboat Springs, Colo., real estate agent."

Bloomberg - "IndyMac, Rivals Make `Major Changes' in Home Lending" (8-2-07)

"IndyMac Bancorp Inc. is joining rival lenders in making 'very major changes' to home-loan standards and charging higher rates because of a slump in mortgage securities, the company's chief executive officer said. The market for mortgage bonds has become 'very panicked and illiquid,' CEO Michael Perry wrote in e-mail to employees yesterday. National City Corp. this week stopped buying second mortgages from other lenders and making some stated-income loans. Wachovia Corp., the fourth-biggest U.S. bank, today decided to stop making Alt A mortgages through brokers."

Bloomberg - "American Home Ends Loans; GE, CIT Seek Exit: Subprime Scorecard" (8-2-07)

"The table below tracks sales, shutdowns, bankruptcies and transactions tied to home lenders. At least 70 mortgage companies have halted operations, gone bankrupt or sought buyers since the start of 2006, according to Bloomberg data. Overdue payments on U.S. subprime mortgages rose to the highest level since 2002 during the first quarter of this year, according to the Mortgage Bankers Association."

Telegram.com - "Cold feet becoming the factor" (8-2-07)

"The widening fallout in the U.S. mortgage industry has reminded investors of a risk they had forgotten: the fear of risk itself. As unpaid mortgages and bankrupt lenders bring the weakest segments of the mortgage industry to its knees, investors have begun dumping debt and other investments that would seem to have nothing to do with home loans."

Reuters - "Accredited Home says survival in doubt" (8-2-07)

"Accredited Home Lenders Holding Co. (LEND.O: Quote, Profile, Research), a subprime mortgage lender that agreed in June to be acquired, said its survival is in doubt and that bankruptcy is possible, sending its shares down as much as 52.5 percent. In its delayed 2006 annual report filed Thursday with the U.S. Securities and Exchange Commission, San Diego-based Accredited said it could not guarantee it would remain a 'going concern' as market conditions worsen for subprime lenders."

Business Week - "The Pain Moves Beyond Subprime" (8-2-07)

"On July 31 the stock market resumed a downdraft that had begun a week earlier, and once again bad news from a financial company triggered the sell-off. Shares of American Home Mortgage Investment (AHM) plunged 88% after the Melville (N.Y.) lender to homeowners with decent credit histories warned that it's facing serious liquidity issues and may be forced to close. For the year, the widely followed KBW Bank Index of the 24 largest lenders has fallen 10%, caused mostly by the meltdown in the subprime mortgage industry. And because financial shares make up 20% of the Standard & Poor's 500-stock index—its biggest component—the pain has spread. Without them, the S&P would have been up 5.6% in 2007 through July instead of the 2.6% it logged."

Business Week - "Accredited warns about solvency" (8-2-07)

"Accredited Home Lenders Holding Co., a nonbank mortgage lender, may not be able to remain solvent as the subprime mortgage market rapidly deteriorates and lenders seek to cut their potential losses, the company said in a regulatory filing Thursday. 'We face significant challenges due to adverse conditions in the non-prime mortgage industry, and we cannot assure you that we will continue to operate as a going concern,' the company said in a filing with the Securities and Exchange Commission."

MBA - "Mortgage Applications Decrease in Latest MBA Weekly Survey" (8-1-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 27, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 607.1, a decrease of 0.3 percent on a seasonally adjusted basis from 609.0 one week earlier. On an unadjusted basis, the Index decreased 0.4 percent compared with the previous week and was up 14.2 percent compared with the same week one year earlier. The Refinance Index increased 1.8 percent to 1724.1 from 1692.9 the previous week and the seasonally adjusted Purchase Index decreased 1.8 percent to 416.6 from 424.2 one week earlier. The seasonally adjusted Conventional Index decreased 0.5 percent to 887.2 from 892.1 the previous week, and the seasonally adjusted Government Index increased 2.2 percent to 139.9 from 136.9 the previous week."

NAR - "June Pending Home Sales Index Shows Market Improvement" (8-1-07)

"A forward-looking indicator based on pending home sales shows the market is likely to stabilize in the months ahead, according to the National Association of Realtors®. The Pending Home Sales Index*, based on contracts signed in June, was 5.0 percent higher from the downwardly revised May index of 97.5, but is 8.6 percent below June 2006 when it stood at 112.0. This 5.0 percent monthly gain is the largest in more than three years, since a 6.1 percent increase in March 2004."

Yahoo - "Fund Investors Launch Bear Claims" (8-1-07)

"Investors in two Bear Stearns Cos. hedge funds took action against the company Wednesday for allegedly misleading them about the extent of the investment bank's exposure to risky mortgage-backed securities, a lawyer for the plaintiffs said. The move comes as the two funds filed for bankruptcy protection, two weeks after the company told investors one was essentially worthless and the other had lost more than 90 percent of its value."

Bloomberg - "Subprime Defaults Blamed for U.S. Earnings Setbacks" (8-1-07)

"Railroads, chemical producers and insurance companies are blaming the worst U.S. housing slump in 16 years for their earnings woes. Burlington Northern Santa Fe Corp., the second-biggest U.S. railroad, said lower shipments of housing products and lumber reduced second-quarter earnings. DuPont Co., the third-largest chemical maker, said slumping demand for kitchen and bathroom countertops was partly responsible for its profit drop. Genworth Financial Inc., the former insurance unit of General Electric Co., said earnings will be at the 'lower end' of its forecast this year as mortgage-insurance claims increase."

Bloomberg - "Beazer Shares Plunge; Bankruptcy Speculation Denied" (8-1-07)

"Shares of Beazer Homes USA Inc., the homebuilder facing investigations by the FBI and securities regulators, plunged the most ever on speculation the homebuilder may file for bankruptcy. 'We do not know where these scurrilous and unfounded rumors started,' Beazer said in a statement. Beazer's shares fell $2.62, or 18.7 percent, to $11.37 as of 2:46 p.m. in New York, after earlier dropping as much as 42 percent to $8.10. A Standard & Poor's homebuilder index slid as much as 8.5 percent."

Bloomberg - "Gold, Silver Fall as Equity Markets Tumble on Credit Concerns" (8-1-07)

"Gold and silver fell in New York on speculation a decline in equity markets will reduce investment demand for precious metals. Gold fell 3.6 percent last week when stocks worldwide suffered a $2.1 trillion sell-off. Shares dropped today amid concern that defaults among U.S. subprime mortgages may be spilling over to other credit markets. Bear Stearns Cos. blocked investors from withdrawing money from a hedge fund, and Macquarie Bank Ltd. warned two of its funds may lose 25 percent."

CNN - "Homebuilder shares tumble on credit woes" (8-1-07)

"Homebuilder shares fell sharply Wednesday as credit concerns mounted due to the widening effect of the crumbling U.S. housing market, and Beazer Homes USA Inc. dropped more than 40 percent before bouncing off the lows. According to several sources, there were rumors in the market earlier in the day that Beazer was facing a possible bankruptcy or that an SEC investigation into Beazer was becoming more serious than expected."

Bloomberg - "U.K. Consumers Cut Back on Beer, Shoes as Mortgage Crunch Looms" (7-31-07)

"Ben Craster says he'll be drinking less beer this summer, and Christine Baines is cutting back on clothes and cosmetics. They're among the millions of Britons preparing for a mortgage crunch. Craster, a London designer, and Baines, a company director from Knutsford, England, will have to arrange new home loans as fixed-rate discounts expire on mortgages they took out two years ago. The Bank of England has raised borrowing costs five times during the past year, increasing the average monthly mortgage payment by about 100 pounds ($200), according to the Council of Mortgage Lenders."

CNN - "Foreclosure filings skyrocket" (7-31-07)

"U.S. home foreclosure filings rose 58 percent in the first six months of the year and could surpass 2 million this year as the housing market continues to deteriorate, a report said. Foreclosure filings in the first half spiked from the same period last year to 925,986 as many overstretched borrowers have been caught between rising interest rates and falling home prices. The Federal Reserve has cited the faltering housing market as the biggest risk to economic growth."

CNN - "Home prices continued slide in May" (7-31-07)

"Prices of existing U.S. single-family houses extended their slide across the country in May, marking the 18th consecutive decline in the growth rate, according to an index of major metropolitan areas. The composite month-over-month Standard & Poor's/Case-Shiller Home Price Index of 10 metropolitan areas declined 0.3 percent to 218.37, bringing the year-over-year fall to 3.4 percent, S&P said in a press release. The composite month-over-month Standard & Poor's/Case-Shiller Home Price Index of 20 metro areas also showed a 0.2 percent drop, to a 200.04 reading, or a 2.8 percent year-over-year loss."

Bloomberg - "U.S. S&P/Case-Shiller Home Price Index Declines 2.8%" (7-31-07)

"Home prices in 20 U.S. cities fell the most in at least six years, suggesting the housing recession has yet to touch bottom. The S&P/Case-Shiller index of home prices in 20 metropolitan areas dropped 2.8 percent in May from a year ago, led by declines in Detroit and San Diego, according to the report issued today by Standard & Poor's and MacroMarkets LLC. The drop was less than the median forecast of four economists surveyed by Bloomberg News."

Bloomberg - "Bear, Lehman, Merrill Trade as Junk, Derivatives Show" (7-31-07)

"On Wall Street, Bear Stearns Cos., Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Goldman Sachs Group Inc., are as good as junk. Bonds of U.S. investment banks lost about $1.5 billion of their face value this month as the risk of owning the securities increased the most since at least October 2004, according to Merrill indexes. Prices of credit-default swaps based on the debt imply that their credit ratings are below investment grade, data compiled by Moody's Investors Service show."

CNN - "IndyMac profit plummets on mortgage pain" (7-31-07)

"AndyMac Bancorp Inc., a big Southern California mortgage specialist, said Tuesday second-quarter profit fell 57 percent as the deepening U.S. housing slump hurt margins and loan volume, and more customers fell behind on payments. Unlike at many rivals, results were better than expected. IndyMac, however, did not provide its usual financial forecast with earnings, citing what Chief Executive Michael Perry called 'significant current uncertainties in the housing and mortgage markets.'"

Los Angeles Times - "Mortgage lender graveyard filling up" (7-31-07)

"American Home Mortgage is clinging to life, but its time will come. And when it does, it will join a very long list of failed mortgage lenders. The Implode-O-Meter blog, one of our favorites for news on the mortgage industry, now counts 105 lenders that have imploded. While we're at it, we also want to express our support for The Implode-O-Meter, and Aaron Krowne, in their current legal battle. Loan Center of California sued The Implode-O-Meter in May, alleging that an email posted on the blog in April caused such damage to the company that two of its major sources of funding -- Credite Suisse and Washington Mutual -- withdrew nearly $4 million in funding."

A very interesting and eye opening video about how money is actually created
http://video.google.com/videoplay?docid=-9050474362583451279