Tuesday, October 07, 2008

Mortgage Bankers Association - "MBA Study Shows Mortgage Industry Production Profits Fell Again in 2007" (10-7-08)

"Mortgage companies lost an average of $560 on every loan they originated last year, a drop from the $50 per loan they lost in 2006, according to the Mortgage Bankers Association's (MBA) annual cost study. While loan origination and ancillary fees grew on a per-loan basis, they did not keep pace with increases in production operating expenses, which grew seven percent to $3,663 per loan."

The Sacramento Bee - "Accord aims to save homes" (10-7-08)

"A legal settlement announced Monday by Countrywide parent Bank of America and California Attorney General Jerry Brown promises an $8.4 billion rescue operation to save an estimated 125,000 California borrowers – among 400,000 households nationally – from losing their homes. Bank of America agreed to freeze and lower interest rates, suspend foreclosures and waive late fees for live-in homeowners who took Countrywide loans from 2004 through 2007. A few who already lost homes also are eligible for some aid. The firm said it will begin reaching out Dec. 1 to borrowers deemed eligible for help."

Yahoo - "Bernanke sees worsening economy, hints at rate cuts" (10-7-08)

"Federal Reserve Chairman Ben Bernanke predicted that the global financial markets crisis is likely to restrain the economy well into next year and signaled that the Fed may be getting ready to cut interest rates."

Bloomberg - "Fed Sets Floor Below Rate Target, Engineering `Stealth' Cut" (10-7-08)

"The Federal Reserve may have trimmed borrowing costs yesterday without actually saying so.
The central bank used power granted under last week's financial-rescue legislation to effectively set a floor under its main interest rate that's lower than the 2 percent target set by policy makers last month. The Fed may now pay interest on bank reserves while it floods financial markets with liquidity, pushing down the overnight lending rate by about 0.75 percentage point to 1.25 percent."


Bloomberg - "IMF Says World Economy Heading for `Major Downturn'" (10-7-08)

"Global growth is headed for a 'major downturn' next year, as U.S. gross domestic product grinds close to a halt, the International Monetary Fund said in a staff report prepared for a Group of Seven meeting this week."

Bloomberg - "General Growth Leads REITs Down on Debt Concern" (10-7-08)

"General Growth Properties Inc. led U.S. shopping center owners lower on concern over the company's ability to repay its debt. Chicago-based General Growth declined 42 percent amid speculation the company may not be able to refinance $1.2 billion in debt coming due this year, said Jeffrey Laverty, an analyst at Oscar Gruss & Son, in New York, who has a 'sell' rating on the company's shares. Standard & Poor's cut its corporate credit rating on General Growth yesterday to B+ from BB. A restructuring 'is inevitable,' Laverty said."

Bloomberg - "Lenders Squeeze Companies Amid $112 Billion of Losses" (10-7-08)

"McClatchy Co., Building Materials Holding Corp. and almost 100 other companies across the U.S. are suffering payback from lenders stung by at least $112 billion of losses in the loan market."

Orange County Register - "28 O.C. ZIPs on most expensive U.S. homes list" (10-7-08)

"Orange County placed 28 of its 83 ZIP codes in Forbes magazine’s ranking of the most expensive ZIPs for homes. Forbes based its rankings on median home sales prices in the year ended June 2008. The data was collected by First American CoreLogic. Newport Coast’s 92657 was tops in O.C., ranking 4th nationally with a median selling price of $2.8 million. It only trailed Miami Beach ($3.85 million); Alpine, N.J. ($3,59 million) and Mill Neck, N.Y. ($3 million.)"

Orange County Register - "O.C. property tax appeals soar 72%" (10-7-08)

"A hand count of property tax appeals filed by the Sept. 15 deadline shows that 13,609 property owners have disputed the county’s assessed value for their home or business. That’s 72% more than were filed in 2007, the agency that processes real estate tax appeals reported. The number is preliminary, since the Orange County Clerk of the Board’s office is still processing the appeals. The agency has entered 11,142 into its computer system so far."

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