Mortgage Bankers Association - "MBA Raises Concern Over Limit on Mortgage Interest Deduction in Federal Budget" (2-27-09)

"The limitation on itemized deductions for those taxpayers earning over $250,000 (joint) and $200,000 (single) will reduce the itemized deductions related to home mortgage interest, real estate taxes on primary residence and mortgage insurance. Under the plan, taxpayers over the income limits will receive tax benefits from their itemized deductions at a maximum tax rate of 28 percent (instead of the higher incremental tax rate commensurate with their income tax bracket)."

The San Diego Union Tribune - "Home builders expect boost from state tax credit" (2-27-09)

"A $10,000 state tax credit will benefit a projected 10,000 new-home buyers starting Sunday and, in turn, could help beleaguered home builders, the California Building Industry Association said yesterday. The measure, costing $100 million over the next three years, was included in the budget compromise passed by the Legislature and signed by Gov. Arnold Schwarzenegger last week."

Yahoo - "FDIC raising fees on banks, adds emergency fee" (2-27-09)

"The Federal Deposit Insurance Corp. now expects that bank failures will cost the insurance fund around $65 billion through 2013, up from an earlier estimate of $40 billion. The bank failures, 14 already this year following 25 last year, reflect the ravages of rising unemployment and falling home prices that have sent loan defaults soaring."

The Washington Post - "Mortgage Rescue Eligibility Still Being Finalized" (2-27-09)

"A day after President Obama unveiled his $75 billion foreclosure prevention program, administration officials yesterday said they were still determining which homeowners should qualify. The administration is developing a standard for lenders to use in evaluating applicants that seeks to exclude homeowners who are not in real need or are too far behind in their payments to be saved. Officials have set some conditions for eligibility, including requiring that borrowers' mortgage payments consume more than 38 percent of their income and that the property be a primary residence."

CNN - "New home sales at all-time low" (2-27-09)

"Sales of newly constructed homes fell 10% in January, sinking to the lowest level on record, according to a government report released Thursday. The U.S. Census Bureau reported that new home sales fell to a seasonally adjusted annual rate of 309,000 in January from a revised 344,000 in December. It was the lowest level since the Census Bureau began keeping records in 1963."

Bloomberg - "Low Mortgage Rates a Mirage as Fees Climb, Eligibility Tightens" (2-27-09)

"Bankers around the country say one reason the housing market hasn’t stabilized is that while mortgage rates have come down, hurdles have gone up. Rising default rates and bank losses have made lenders more risk-averse, leading to higher fees, increased insurance rates and difficulties refinancing loans."

Bloomberg - "U.S. Economy: GDP Shrinks 6.2%, More Than Previously Estimated" (2-27-09)

"The U.S. economic contraction in the fourth quarter was deeper than the government first estimated, with other reports today signaling little prospect of relief until at least the middle of 2009. Gross domestic product shrank at a 6.2 percent annual pace from October through December, the most since 1982, the Commerce Department said today in Washington. Separate figures showed consumer sentiment and business activity dropped this month."

Yahoo - "Citigroup reaches aid deal with government" (2-27-09)

"The U.S. government will exchange up to $25 billion in emergency bailout money it provided Citigroup Inc. for as much as a 36 percent equity stake in the struggling bank, greatly increasing the risks to taxpayers as voter unhappiness about the broader bailout program rises."