The Wall Street Journal - "Citi, Senators Reach Mortgage Deal" (1-8-08)

"Citigroup Inc. signed on to a deal with top Democrats in the Senate to move forward with a measure that would allow judges to set new repayment terms for millions of mortgage holders who wind up in bankruptcy court, senators involved said."

San Francisco Chronicle - "Mortgage giants extend suspensions of foreclosures" (1-8-08)

"Mortgage giants Fannie Mae and Freddie Mac said Thursday they will extend the suspension of foreclosure sales and evictions from single-family homes through the end of January. The companies had suspended foreclosures through the holidays, but were expected to resume proceedings after Jan. 9."

Inman News - "Panel: Little optimism for 2009" (1-8-08)

"Home prices remain unaffordable in many markets, and with unemployment headed up, it's not realistic to expect lower interest rates on conforming loans will be enough to boost home sales. Some panelists said measures being undertaken or weighed by lawmakers and policymakers -- such as tax breaks or subsidized interest rates for homebuyers or 'cram-downs' of bankrupt borrowers' mortgage principal -- may even do more harm than good"

Bloomberg - "Consumer Borrowing in U.S. Falls Record $7.9 Billion" (1-8-08)

"Consumer borrowing dropped by a record $7.9 billion in November as Americans scrambled to boost savings in face of the deepening recession and amid an investor exodus from securities backed by credit-card and other loans. The slump brought consumer credit down to $2.57 trillion, and capped the first back-to-back monthly decline since 1992, the Federal Reserve said today in Washington. The biggest decrease came in securitized assets, an area where Fed policy makers are creating a new $200 billion lending program to shore up credit."

CNN - "Mortgage rates dip to new all-time low" (1-8-08)

"Mortgage rates fell to another all-time low, declining for the tenth consecutive week. Government sponsored mortgage lender Freddie Mac said Thursday that fixed rates on 30-year mortgages averaged 5.01% for the week ending Jan. 8th. That's down from 5.10% last week and well below 5.87%, which is where the rate stood at this time last year."

Bloomberg - "No Recovery for Real Estate as Speculators Dominate Sales" (1-8-08)

"As the U.S. housing recession enters its fourth year, there’s no sign of a recovery because speculators account for most of the rise in sales. While the purchases are trimming the inventory of unsold properties, most of those bought by speculators will likely return to the market when prices rise again, hampering any recovery, said Nobel laureate economist Joseph Stiglitz and Yale University Professor Robert Shiller in interviews."

Bloomberg - "Bank of America, Citigroup May Face Restrictions After Crisis" (1-8-08)

"The biggest U.S. banks may face the threat of lower profits or pressure to break up under greater regulation following the financial crisis. Federal Reserve officials have made tackling the issue of firms that are too big to fail a priority. Options may include banning or restricting activities that could threaten the stability of the financial system, analysts said."

Wall Street Journal - "Commercial Property Loses Shelter" (1-8-08)

"Delinquencies on mortgages for hotels, shopping malls and office buildings were sharply higher in the fourth quarter, as the weaker economy hit landlords and threatens to cause losses for investors in the $3.4 trillion market. Commercial real estate has held up better than the housing market, but began to struggle at the end of last year. New data from Deutsche Bank show that delinquencies on commercial mortgages packaged and sold as bonds, which represent nearly a third of the commercial real-estate debt market, nearly doubled during the past three months, to about 1.2%."