Tuesday, February 24, 2009

CBIA - "Housing Production Falls to Record Low in January, CBIA Announces" (2-24-09)

"Housing production in January posted the lowest annual rate on record, the California Building Industry Association announced today, but CBIA officials expressed hope that state and federal tax credits enacted in the past few weeks would soon begin to cause new-home sales to increase and thereby increase housing production."

Inman News - "Bernanke sees chance of recovery in 2010" (2-24-09)

"If measures to prop up banks, prevent foreclosures and stabilize the financial system succeed, there is a 'reasonable prospect' that the current recession will end this year and that 2010 will be a year of recovery, Federal Reserve Chairman Ben Bernanke told lawmakers Tuesday."

The San Diego Union Tribune - "More economic gloom, but Wall Street gets a boost" (2-24-09)

"
Just when things were looking even worse in the economy - consumer confidence in free fall and home prices dropping faster - came some good news: Wall Street bolted higher on a regulator's prediction that the recession may end this year. The Dow Jones industrials finished up 236 points Tuesday after Federal Reserve Chairman Ben Bernanke told Congress 'there is a reasonable prospect' that 2010 will be a recovery year, provided credit flows normally and financial markets work."

Yahoo - "Mortgage Costs" (2-24-09)

"Mortgage rates are low, but getting them is going to cost you. New rules by Freddie Mac and Fannie Mae are upping the fees for borrowers with less than perfect credit, those in the mortgage industry say. Other increased costs reflect the uncertainty in the mortgage market, as lenders try to reduce their risk and anticipate rates."

CNN - "Home prices in record drop" (2-24-09)

"Home prices declined at a record pace around the nation in the final three months of 2008, according to an industry report released Tuesday. The S&P Case-Shiller National Home Price Index reported that prices sank a record 18.2% during the last three months of 2008, compared with the same period in 2007."

Bloomberg - "AIG’s Liddy May Shift Strategy as Asset Sales Stall" (2-24-09)

"
American International Group Inc. may scrap a plan to repay a $60 billion U.S. government loan by selling businesses, after failing to find enough promising bidders, said two people with knowledge of the matter."

Bloomberg - "U.S. to Get Bank Ownership Stakes Only as Losses Rise" (2-24-09)

"
Federal Reserve Chairman Ben S. Bernanke rejected the idea that officials plan to use reviews of banks’ balance sheets as a pretext for government takeovers of the nation’s largest lenders. The Treasury will buy convertible preferred stock in the 19 largest U.S. banks if stress tests determine they need more capital to weather a deeper-than-forecast recession, Bernanke told lawmakers in Washington today. The shares would be converted to common equity stakes only as extraordinary losses materialize, he said."

Yahoo - "Dr. Doom: Nationalizing Banks is 'Market Friendly'" (2-24-09)

"Nationalizing insolvent US banks is the best solution to avoid a Japan-like scenario in which 'zombie' financial institutions would eat up public resources while the US economy would teeter on the brink of depression, Nouriel Roubini, economics professor NYU and chairman at RGE Monitor told CNBC Tuesday."


Bloomberg - "Home Prices Fell 8.2 Percent in 2008 on Foreclosures" (2-24-09)

"
U.S. home prices fell a record 8.2 percent in 2008 as the recession and a surge of foreclosures caused the worst devaluation of real estate since the Great Depression. The fourth-quarter figure was 3.4 percent lower than the prior quarter, on a seasonally adjusted basis, the Federal Housing Finance Agency said today in a report. The decline is the largest on record, the Washington-based agency said."

Bloomberg - "Obama’s Mortgage Plan for Fannie, Freddie May Face Legal Snag" (2-24-09)

"
President Barack Obama’s plan to use mortgage-finance companies Fannie Mae and Freddie Mac to refinance as many as 5 million loans may face legal challenges over whether the administration is overstepping its authority. The proposal may violate requirements that homeowners put up at least 20 percent of the appraised value of a home or carry mortgage insurance, said U.S. Representative Scott Garrett of New Jersey, the ranking Republican on a panel that oversees the companies."

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