Financial Times - "Washington sends in cavalry to fight off full-blown crisis" (3-27-08)

"The US is sending in the -cavalry to fight the crisis in the credit and housing markets - unleashing government-sponsored enterprises to buy and hold mortgage-backed securities (MBS) for which there is little private demand. The move marks a new stage in the policy response to the credit crisis, in which the US government is increasingly deploying all the tools at its disposal - short of an outright public purchase of mortgage securities - to prevent a full-blown credit crunch."

Bloomberg - "Fed Actions Defuse Subprime ARM Rate Reset Bomb" (3-27-08)

"Many analysts and public officials have said that foreclosures of subprime adjustable-rate mortgages would soar this year as owners' monthly payments jumped when interest rates reset to a higher level. Not only is that unlikely to happen, this year's resets of earlier vintages of subprime mortgages may even reduce some payments that increased in 2007."

Yahoo - "Lennar Swings to Loss, Sales Skid" (3-27-08)

"Lennar Corp., one of the nation's largest homebuilders, said Thursday it swung to a loss in the first quarter as it absorbed charges to adjust land values, while new home sales and prices sank amid the stumbling real estate market."

The San Diego Union Tribune - "KPMG tied to subprime lender's fall" (3-27-08)

"A sweeping five-month investigation into the collapse of one of the nation's largest subprime lenders points a finger at a possible new culprit in the mortgage mess: the accountants. New Century Financial, whose failure just a year ago was the start of the crisis, engaged in 'significant improper and imprudent practice' that were condoned and enabled by auditors at the accounting firm KPMG, according to an independent report commissioned by the Justice Department."

Bloomberg - "Banks Fail to Lower Mortgage Rates as Bernanke Cuts" (3-27-08)

"The difference between the 10-year government bond yield and the average U.S. fixed mortgage rate was 2.7 percentage points last month, the widest spread since 1986, data compiled by Bloomberg show. Banks are defying Bernanke and hoarding cash after writing down the value of more than $200 billion of mortgage-related securities since July. The banking industry's earnings fell to a 16-year low of $5.8 billion in the fourth quarter of 2007, ending six years of record profits, according to the Federal Deposit Insurance Corp. in Washington."

CNN - "100 best places to live and launch" (3-27-08)

"Are job worries tempting you to start your own company? We canvassed the country to find towns with the best mix of business advantages and lifestyle appeal. Check out our 100 top picks and find the perfect place to build your dream."

Bloomberg - "Fed May Gain Influence From Crisis at SEC's Expense" (3-27-08)

"America's financial system faces its biggest overhaul since the Great Depression as officials weigh lessons from the credit-market rout and the near collapse of Bear Stearns Cos. Federal Reserve policy makers are redefining which companies are vital to the flow of credit, an area once the sole domain of commercial banks, and which institutions pose risks to the entire economy if they fail. Treasury Secretary Henry Paulson said in a speech yesterday that the Fed should broaden its oversight to include Wall Street investment firms, now regulated by the Securities and Exchange Commission."

Bloomberg - "Merrill May Write Down $4.5 Billion on Assets, Bernstein Says" (3-27-08)

"Merrill had about $30.4 billion in collateralized debt obligations on its balance sheet at the end of 2007, the most among its peers, analysts led by Brad Hintz in New York wrote today in a note to clients. The value of the CDOs fell sharply in March, which was a 'poor' month for fixed income businesses and asset valuations, Hintz said."

Orange County Register - "2009 loan limit — and beyond — back to $417,000, says OFHEO" (3-27-08)

"Let’s first recall Orange County’s new conforming limit is nearly $730,000 — theoretically that means consumers can soon get the lowest possible mortgage rates on loans up to that amount (Fannie Mae has said it will start buying loans up to the new limit on April 1). However, some mortgage brokers say rates above the old limit of $417,000 and up to the new limit are likely to remain elevated except for loans insured by the Federal Housing Administration."

Los Angeles Times - "New home sales fall to a 13-year low in February" (3-27-08)

"Sales of new homes fell in February for the fourth straight month, pushing activity down to a 13-year low as the steep slump in housing continued. The Commerce Department reported that new home sales dropped 1.8% last month to a seasonally adjusted annual rate of 590,000 units, the slowest sales pace since February 1995. The decline was slightly worse than expected."

Real Estate Journal - "Foreclosure Rate Outpaces Bank Sales" (3-27-08)

"Foreclosures are occurring at the highest rate in decades -- and as a result, lenders are acquiring homes faster than they can sell them off. Last year, sales of foreclosed homes rose just 4.4%, while the supply more than doubled, according to First American CoreLogic."