NAHB - "Builder Confidence Virtually Unchanged In January" (1-16-08)

"Builder confidence in the market for new single-family homes was virtually unchanged for a fourth consecutive month in January as mortgage-market problems and inventory issues continued to pose challenges, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), released today. The HMI rose a single point to 19 this month following a downwardly revised 18 reading in December and 19 readings in both October and November of 2007."

Mortgage Banker Association - "Federal Housing Finance Board Approves Affordable Housing Program Waiver" (1-16-08)

"The Board of Directors of the Federal Housing Finance Board (Finance Board) passed a resolution permitting the Federal Home Loan Bank of San Francisco to develop a pilot program to use a portion of its Affordable Housing Program (AHP) homeownership set-aside allocation to assist low- and moderate-income households that, as a result of a recent or scheduled increase in monthly mortgage payments, will no longer be able to afford their mortgages. The Bank’s program, known as the Homeownership Preservation Subsidy (HPS), will replace the household’s non-traditional or subprime mortgage with a fixed-rate, fully-amortizing, 30 year mortgage at a market or below-market interest rate."

Mortgage Bankers Association - "Press Release - Weekly Application Survey" (1-16-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 11, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 906.4, an increase of 28.4 percent on a seasonally adjusted basis from 706.0 one week earlier. On an unadjusted basis, the Index increased 64.8 percent compared with the previous week which was shortened by the New Year’s holiday and was up 39.0 percent compared with the same week one year earlier."

Bloomberg - "Regional U.S. Banks May Report Record Drop in Profit" (1-16-08)

"Regions Financial Corp., Capital One Financial Corp. and PNC Financial Services Group Inc. may say bad loans spread to auto, consumer and commercial finance from mortgages, resulting in a record earnings decline for regional U.S. banks. Fourth-quarter earnings per share at the seven biggest regional banks probably dropped an unprecedented 66 percent, according to Sandler O'Neill & Partners research director Mark Fitzgibbon. It may be 'the mother of all kitchen-sink quarters' as banks pile on as many write-offs as possible to ensure that few or none occur this year, he said."

CNN - "Dollar tumbles to 2-1/2 year low vs. yen" (1-16-08)

"The dollar sank to a 2 1/2- year low against the yen Wednesday in Asia as investors sold the greenback due to concerns over the U.S. economy and financial system. The dollar was trading at ¥105.98 at midafternoon Wednesday, down from ¥107.07 late Tuesday in New York and hitting the lowest levels since May 2005. The euro rose to $1.4842 from $1.4833."

The San Diego Union Tribune - "Citigroup woes fuel fears for economy" (1-16-08)

"Citigroup, the nation's largest bank, reported a staggering fourth-quarter loss of $9.83 billion yesterday and issued a sobering forecast that the housing market and the broader economy still had not bottomed out. To shore up their financial condition, Citigroup and Merrill Lynch, which also has been rocked by the subprime mortgage debacle, were forced again to go hat in hand for cash infusions from investors in the United States, Asia and the Middle East, for a combined total of nearly $19.1 billion."

Bloomberg - "Ambac Will Cut Dividend, Raise $1 Billion in Capital" (1-16-08)

"Ambac Financial Group Inc. replaced its chief executive officer, slashed the dividend 67 percent and will raise more than $1 billion to preserve its AAA credit rating after announcing the biggest-ever writedowns by a bond insurer. Ambac, the second-largest insurer of municipal and structured finance debt, fell the most ever on the New York Stock Exchange, extending a 76 percent decline from the past 12 months. Ambac will report a loss after reducing the value of securities it guarantees by $3.5 billion, according to a statement today."

The New York Sun - "High Court Decision Could Protect Subprime Players" (1-16-08)

"A decision by the U.S. Supreme Court could make it more difficult for investors to sue over the collapse of the subprime mortgage market. Yesterday's ruling puts strict limitations on when lawyers, accountants, and other professionals can be sued in securities fraud cases. The 5-3 decision in Stoneridge Investment Partners v. Scientific-Atlanta Inc. means that in many lawsuits over stock prices, only the "primary violators" of the alleged fraud can be sued. The court said private plaintiffs couldn't bring such suits against defendants for "aiding and abetting" fraudulent bookkeeping."

Bloomberg - "JPMorgan Net Falls; Writedown Smaller Than Estimated" (1-16-08)

"JPMorgan Chase & Co., the third- biggest U.S. bank by assets, said profit dropped 34 percent on subprime-mortgage writedowns and higher costs for future loan defaults. Fourth-quarter net income declined to $2.97 billion, or 86 cents a share, from $4.53 billion, or $1.26, a year earlier, the New York-based bank said today in a statement. JPMorgan rose 5.8 percent in New York trading as the $1.3 billion writedown was smaller than analysts estimated and the company reported higher earnings from consumer banking, credit cards and asset management."

Bloomberg - "HSBC Stock Drop in Hong Kong Is Biggest Since 2001" (1-16-08)

"HSBC Holdings Plc, Europe's biggest bank by market value, dropped the most in six years in Hong Kong trading on concern it may have to increase provisions for U.S. bad loans after Citigroup Inc. reported a record loss. HSBC declined 4.8 percent to HK$115, the lowest since August 2004. The decline came as Hong Kong's benchmark Hang Seng Index slumped 5.4 percent, the biggest drop since the Sept. 11, 2001, terrorist attacks on the U.S."

Los Angeles Times - "California briefs" (1-16-08)

"A developer who had proposed a large hotel-condominium complex in the resort district confirmed Tuesday that he is pulling out of the project because of a weak housing and hotel market and the pressure of a looming Disney-backed ballot initiative."

Real Estate Journal - "Wall Street Trader Paulson Made Billions on Subprime" (1-16-08)

"On Wall Street, the losers in the collapse of the housing market are legion. The biggest winner looks to be John Paulson, a little-known hedge fund manager who smelled trouble two years ago. Funds he runs were up $15 billion in 2007 on a spectacularly successful bet against the housing market. Mr. Paulson has reaped an estimated $3 billion to $4 billion for himself -- believed to be the largest one-year payday in Wall Street history."