Bloomberg - "CDO Ratings to Fall as Losses Trigger Fitch Overhaul" (2-5-08)

"Fitch Ratings may downgrade all of the $220 billion of collateralized debt obligations it assesses that are based on corporate securities because of rising losses. The New York-based company may lower the notes by as much as five levels after failing to accurately assess the risk of debt that packages other assets, according to guidelines proposed by Fitch today. CDOs with AAA grades that are based on credit-default swaps and aren't actively managed may face the steepest reductions."

USA Today - "Even credit-worthy borrowers face more hurdles" (2-5-08)

"U.S. banks are toughening standards for home mortgages and commercial real estate development loans, seeing more sluggish demand and predicting further delinquencies, according to a Federal Reserve survey released Monday that added to concerns about the faltering economy."

Bloomberg - "Standard Pacific Rises on Loan Waiver, Debt Reduction" (2-5-08)

"Standard Pacific Corp., the California builder that has lost more than three-quarters of its value in the past year, rose as much as 21 percent in New York trading after getting a waiver from lenders to avoid default. Banks extended loan terms until March 30, Irvine, California-based Standard Pacific said in a regulatory filing today. The company said yesterday it cut debt and inventory in the fourth quarter and fiscal year."

Bloomberg - "GMAC Posts $724 Million Loss as Mortgage Loans Sour" (2-5-08)

"GMAC LLC, the auto and mortgage lending company 49 percent owned by General Motors Corp., posted a $724 million fourth-quarter loss as bad loans in the U.S. rose to a record. The net loss compares with a profit of $1 billion a year earlier, the Detroit-based company said in a statement. GMAC, whose majority owners include Cerberus Capital Management, is talking to buyers for parts of the Residential Capital mortgage unit, which had a $921 million loss."

Orange County Register - "Empty O.C. apartments a growing trend" (2-5-08)

"New evidence is out that Orange County’s apartment market continues to soften, at least among large complexes. Axiometrics Inc., the Dallas-based apartment analytics firm, reports that the current O.C. occupancy rate is 94.5%, down 1.3 percentage points from the first quarter of 2007. It’s the lowest since the first quarter of 2002 when occupancy was at 94.9%, says Axiometric’s Jay Denton. That was during the slowdown that followed the dot-com crash and the 9/11 terrorist attack."

Real Estate Journal - "Is a Mortgage the Best HomeFor a Year-end Bonus?" (2-5-08)

"With the market gyrating and real-estate prices tanking, deciding what to do with a windfall isn't exactly easy these days. Anyone carrying high-interest credit-card debt should pay it off. After that, the choices get tougher. You could scoop up some beaten-down stocks or battered high-yield bonds, figuring they'll rebound. Or you could play it safe and pay down your mortgage. If the slowing economy has you worried, the mortgage option can look attractive. Say you received a $100,000 year-end bonus and have a $300,000, 30-year, 6% fixed-rate mortgage. If you took out the mortgage at the start of 2006 and simply make the regular monthly payment, you'll pay it off in early 2036. If you put the $100,000 bonus toward the mortgage, you'll pay it off more than 15 years earlier, in late 2020."