DQNews - "California Foreclosure Activity Still Rising" (1-22-08)

"The number of mortgage default notices filed against California homeowners jumped last quarter to its highest level in more than fifteen years, a real estate information service reported. Lending institutions sent homeowners 81,550 default notices during the October-to-December period. That was up by 12.4 percent from 72,571 the previous quarter, and up 114.6 percent from 37,994 for fourth-quarter 2006, according to DataQuick Information Systems."

NAHB - "NAHB Applauds Fed Rate Cuts; Calls On Congress To Do Its Part" (1-22-08)

"The National Association of Home Builders (NAHB) today applauded the Federal Reserve Board’s aggressive action to cut interest rates by 75 basis points to help jump-start the economy. NAHB also echoed Treasury Secretary Henry Paulson’s comments this morning before the U.S. Chamber of Commerce on the need for Congress to move swiftly to address the current housing situation by enacting the following legislation: FHA modernization to increase the availability of affordable FHA mortgages; comprehensive reform of Fannie Mae and Freddie Mac that allows them to temporarily buy larger home loans in high-cost markets; and allowing cities and states to issue tax-exempt mortgage bonds to refinance existing loans to help troubled borrowers."

NAR - "Statement: NAR Commends Federal Reserve Board on Timely Interest Rate Cut" (1-22-08)

"Today’s 75-basis-point cut in the Fed funds rate to 3.50 percent is a very good step in the right direction to boost the economy and send a clear message to both the market and to consumers. This strong rate cut will help lower mortgage interest rates and lessen the burden of adjustable-rate loans that are resetting in the current environment. It also could help stimulate business investment in the wake of market uncertainties. We commend the Federal Reserve Board on its bold action, but at the same time we urge it to keep a close watch to see if additional action is needed."

Voice of San Diego - "Questioning the Employment Data" (1-22-08)

"San Diego had another pretty good month for job growth, according to data released last week by the California Employment Development Department. Unfortunately, you may not want to believe the numbers."

Bloomberg - "Bank of America Earnings Plummet After Loan Writedown" (1-22-08)

"Bank of America Corp., the second- largest U.S. bank, said earnings dropped 95 percent after $5.28 billion of mortgage-related writedowns and higher provisions for future loan losses. Fourth-quarter net income fell to $268 million, or 5 cents a share, from $5.26 billion, or $1.16, a year earlier, Charlotte, North Carolina-based Bank of America said today in a statement. Excluding merger and restructuring costs and a gain from the sale of Marsico Capital Management LLC, the company earned 5 cents a share, missing the 21-cent average estimate of 21 analysts surveyed by Bloomberg."

Bloomberg - "Ambac Reports Loss, Talks With `Potential Parties'" (1-22-08)

"Ambac Financial Group Inc., the first bond insurer to lose its AAA credit rating because of subprime mortgages, is considering 'strategic alternatives' after posting its biggest-ever loss. The shares jumped 29 percent on optimism the company may be sold. The second-largest bond insurer posted a fourth-quarter net loss of $3.26 billion, or $31.85 a share, after writing down the value of credit-derivatives tied to loans made to homeowners with poor credit by $5.21 billion, according to a statement by the company today."

Bloomberg - "Ambac, MBIA Lust for CDO Returns Undercut AAA Success" (1-22-08)

"The good times are over, and the culprit isn't municipal bonds; it's subprime debt, a market the insurers waded into in pursuit of even greater profits. Some of the biggest bond insurers are facing potential claims that may deplete their capital. Their share prices have plunged, and credit rating companies are scrutinizing their AAA status. Ambac became the first insurer to lose its triple-A rating, when Fitch Ratings downgraded the company to AA on Jan. 18."

Bloomberg - "Ambac's Downgrade Doesn't Mean End of Bond Insurers" (1-22-08)

"Municipal bond insurance is finished. The municipal bond market will crash. These are among the things I heard or read last week after Ambac Financial Group Inc.'s AAA credit rating was lowered by Fitch Ratings to AA. To which I say: Wrong and wrong."

Real Estate Journal - "Home Construction Fell 14% In December to Record Low" (1-22-08)

"Home construction plunged last month to its lowest level in 16 years, as builders cut back and their lenders grew wary amid rising delinquent construction loans. Housing starts plunged 14.2% in December to a seasonally adjusted annual rate of 1.006 million, the slowest pace since 996,000 starts in May 1991. Permits, an indicator of future construction, tumbled 8.1% to a 1.068 million pace, the Commerce Department said."

Real Estate Journal - "Regulators May Want More Bank Transparency" (1-22-08)

"A top bank regulator continued pressing lenders to rework troubled mortgages as the industry reported it had modified the terms of just 28,000 subprime loans in the third quarter. 'Lawmakers at all levels of government...will look to take additional action if foreclosures keep rising and the economic fallout continues,' Federal Deposit Insurance Corp. Chairman Sheila Bair said."