NAHB - "Fed Rate Cut A Positive Step, Now Congress Must Act On Stimulus, Builders Say" (1-30-08)

"The Federal Reserve’s decision to cut short-term interest rates today by half a percentage point is another step in the right direction to shore up a weakening economy, according to the nation’s home builders. 'We urge Fed policymakers to monitor events closely and be prepared to enact further cuts in the future,' said Brian Catalde, president of the National Association of Home Builders (NAHB) and a home builder from El Segundo, Calif."

CBIA - "State New-Home Production Last Year Fell to Lowest Level in 25 Years, CBIA Announces" (1-30-08)

"California single-family home construction in 2007 fell to the lowest level in 25 years as builders around the state dramatically ratcheted back production in response to a softer sales environment, the California Building Industry Association reported today. According to statewide data compiled by the Construction Industry Research Board, permits for 112,300 new homes, condominiums, townhomes and apartments were issued statewide, down nearly 32 percent from 2006 and 100,000 units less than recorded in the most recent peak year of 2004."

Bloomberg - "UBS Reports Record Loss After $14 Billion Writedown" (1-30-08)

"UBS AG posted the biggest loss ever by a bank after raising fourth-quarter writedowns on securities infected by U.S. subprime mortgages to $14 billion. Europe's largest bank by assets said today it had a net loss of 12.5 billion Swiss francs ($11.4 billion) for the quarter, almost double the median estimate of analysts surveyed by Bloomberg. The annual shortfall was about 4.4 billion francs, the first since Zurich-based UBS was created through a merger a decade ago."

Bloomberg - "Merrill Plans to Cut Back on CDOs, Structured Finance" (1-30-08)

"Merrill Lynch & Co., the world's largest brokerage, will cut back on packaging home loans and consumer debts into securities after the collapse of the subprime mortgage market eroded demand for the products."

Bloomberg - "Subprime Lenders Get Big Accounting Break at SEC" (1-30-08)

"Just when it seemed as if the mortgage mess had hit a new low, now comes this: The Securities and Exchange Commission's staff has granted the subprime-lending industry a huge exemption from the normal rules for off-balance- sheet accounting. In effect, the move will let home lenders keep their balance sheets looking much smaller and less leveraged, even while the off-the-books loans they made get a makeover."

Yahoo - "Mortgage applications near 4-year high" (1-30-08)

"Applications for home mortgages jumped to their highest level in nearly four years as low interest rates led more homeowners to seek refinancing, according to data from an industry group on Wednesday."

Financial Times - "Distressed LBO debt" (1-30-08)

"Before credit markets turned toxic last August, a favourite game was to pinpoint the next big leveraged buy-out target. These days, it is more fun to guess where the first buy-out blow-up might occur. Private equity likes to fix problems behind closed doors. But while the equity is private, much of the associated debt is not. Martin Fridson of Distressed Debt Investor has analysed the pricing of 176 bonds and loans relating to US LBOs completed between January 2002 and September 2007."

The San Diego Union Tribune - "Buying or renting, housing is still pricey" (1-30-08)

"Aspiring home buyers may be cheering the steep drop in housing prices, but the reality is that most workers in San Diego County still do not earn enough to buy the median-priced home of $440,000, according to a study released yesterday. Even grimmer news awaits lower-income households struggling to pay monthly rent. The study by the Center for Housing Policy found that the income needed to affordably rent an average two-bedroom apartment here has risen 13 percent in the last year. That is the third-highest increase among more than 200 metropolitan areas studied nationwide, according to the report."

The San Diego Union Tribune - "Withering of nation's home prices continues" (1-30-08)

"U.S. home prices plunged by a record 8.4 percent in November, marking two years of slowing returns, according to a major index released yesterday. The decline in the Standard & Poor's/Case-Shiller composite home-price index followed a 6.7 percent year-to-year decrease in October. The November performance was the 11th straight monthly decline for the index, which tracks prices of single-family homes in 10 metropolitan areas."

The San Diego Union Tribune - "Countrywide deal still 'a go'" (1-30-08)

"The $422 million loss Countrywide Financial reported yesterday didn't appear to scare off Bank of America. 'At this point, everything is a go to complete this transaction,' Bank of America Chief Executive Ken Lewis said at an investor conference in New York."

Los Angeles Times - "Foreclosures up 435% in the Valley" (1-30-08)

"Foreclosures soared 435.5 percent in the San Fernando Valley last year as nearly 3,000 homeowners surrendered to higher monthly house payments brought on by rising adjustable rate loans, a research center said Tuesday."