NAR - "NAR Launches $5 Million Grant Program for Workforce Housing" (1-22-09)

"In today's challenging economy, the National Association of Realtors^® is taking action to make workforce housing more available. Through the Ira Gribin Workforce Housing Grants, NAR will award as much as $5.23 million to state Realtor^® associations or their housing foundations to support workforce housing initiatives in their states. One-time grants will be awarded on a sliding scale to state Realtor^® programs that promote safe, decent housing for people with low and moderate incomes who cannot afford to live in the communities where they work. The grants are named in honor of Ira Gribin, a former NAR president who was a tireless advocate for fair and affordable housing for diverse populations."

DQNews - "California December 2009 Home Sales" (1-22-09)

"An estimated 37,836 new and resale houses and condos were sold in California last month. That was up 17.6 percent from 32,163 in November and up 47.9 percent from 25,585 for December 2007. Sales have increased on a year-over-year basis for the last six months. California sales for the month of December have varied from last year's low to a peak of 66,503 in 2003, while the average is 44,844. MDA DataQuick's statistics go back to 1988."

Mortgage Bankers Association - "Mortgage Applications Decrease in Latest MBA Weekly Survey" (1-22-09)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 16, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 1195.3, a decrease of 9.8 percent on a seasonally adjusted basis from 1324.8 one week earlier. On an unadjusted basis, the Index decreased 10.3 percent compared with the previous week and increased 23.1 percent compared with the same week one year earlier."

Yahoo - "Housing starts post larger than expected drop" (1-22-09)

"New-home construction plunged to an all-time low in December, capping the worst year for builders on records dating back to 1959. The Commerce Department reported Thursday that construction of new homes and apartments fell 15.5 percent to an annual rate of 550,000 units last month. That shattered the previous low set in November."

Bloomberg - "Freddie Mac Says Fixed Mortgages Rose to 5.12 Percent" (1-22-09)

"The average U.S. rate on a 30-year fixed mortgage rose this week as government data showed the housing recession intensified. The rate rose to 5.12 percent from 4.96 percent a week earlier, Freddie Mac said in a report today. Last week's number was the lowest since the McLean, Virginia-based mortgage buyer began keeping records in 1971. The average rate for a 15-year mortgage rose to 4.8 percent from 4.65 percent."

Bloomberg - "Apartment Rents, Occupancies Drop in U.S. as Job Losses Mount" (1-22-09)

"The average monthly rent dropped to $993 in the three months ended Dec. 31 from $1,002 in the previous quarter, Novato, California-based RealFacts said in a survey of 60 metropolitan areas. The occupancy rate fell to 92.2 percent from 92.9 percent"

Orange County Register - "Will banks offer foreclosures for rent?" (1-22-09)

"Fannie Mae, the mortgage giant now owned by taxpayers, said earlier this month it would allow renters to stay in their homes, if the owner lost it to foreclosure by the company. 'Renters in foreclosed properties have often been a casualty of the foreclosure crisis the country is facing,' said Michael Williams, chief operating officer of Fannie Mae. 'This policy will allow qualified renters to remain in Fannie Mae-owned properties should they choose to do so, mitigate the disruption of personal lives that foreclosures can cause, and help bring a measure of stability to communities impacted by high foreclosure rates.'"

Realty Times - "Builders Using Real Estate Auctions to Stimulate Business" (1-22-08)

"Out West, online real estate auction marketing firm, LFC Group of Companies, recently launched a new auction campaign of brand new homes in Denver, Colorado. The auction, a builder closeout of high-end properties in the master-planned community of Stapleton and the charming town of Golden, features four boutique townhomes and four large estate homes. They are the last remaining inventory of a well-respected local developer, and is further evidence that online auctions are becoming popular again as an alternative for healthy builders and developers eager to accelerate sales. The LFC Group of Companies also launched another new auction for Brava, 16 luxury condominiums located in the heart of Palm Desert, California, where Patrick Veiling, president and founder of Brea-based Real Data Strategies Inc., said, '2009 will be the absolute best purchase opportunity in the desert that we have seen for a long time.'"

Realty Times - "Where's Your Pooled 1031 Exchange Account Invested?" (1-22-08)

"If your exchange account isn't in a separate account, do you know what it's invested in? Recently one of the largest title companies in the United States filed for bankruptcy; a $1.5 billion (with a B!) publicly held company brought down by its 1031 exchange operation. I'm adamantly against pooling, yet most intermediaries pool their client's money. By pooling, I mean the placing of all the client's exchange funds into one account. The reason they pool is that by investing a larger amount of money, they're able to obtain a greater return. Of course the intermediary is going to keep most of the interest, which is the whole point of pooling to begin with. In fact, the more the account earns, the more they earn."

NAHB - "Builder Confidence Edges Down Further In January" (1-21-09)

"Concerns about the faltering economy and reluctant home buyers pushed builder confidence in the market for newly built single-family homes down further in January, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI edged down a single point to a new record low of 8 in January."

DQNews - "Bargain hunting dominates Bay Area home sales in December" (1-21-09)

"Bargain hunting dominated the Bay Area housing market last month as the purchase of foreclosure properties accounted for more than half of all resales for the first time. Sales patterns also reflected continued problems for buyers looking to finance purchases in the upper half of the market's price range, a real estate information service reported."

Wall Street Journal - "Revived Plan Could Boost Home Sales" (1-21-09)

"With a new administration at the helm, a Texas congressman aims to revive seller-funded housing down-payment assistance -- a campaign that, if successful, could jump-start stalled sales and offer ailing home builders a glimmer of hope. Rep. Al Green, D-Texas, is championing HR 600 to reinstate a program that the government, concerned about default rates, halted in the fall. We didn't have to end it; we could have amended it and maintained it,' Rep. Green said."

Inman News - "Fewer reverse mortgage options in '09" (1-21-09)

"Most reverse mortgage options have left the market, victims of the global credit crunch. Yet the biggest player with the longest history still remains, and it pushed the industry into positive growth territory for the 19th straight year. While the 4.3 percent increase in the number of FHA-insured Home Equity Conversion Mortgages (HECMs) was down significantly from previous years, it bettered the negative numbers of conventional, or 'forward,' loans. The Federal Housing Administration is a component of the Department of Housing and Urban Development and now the main player in the conventional (forward) and reverse mortgage market."

Bloomberg - "Bankruptcy Bill May Hurt Banks on Mortgage-Bond Quirk" (1-21-09)

"A proposed change to bankruptcy law to allow judges to reduce homeowners’ mortgages may boost the capital needs of banks and insurers by hundreds of billions of dollars, First Pacific Advisors LLC’s Julian Mann said. The issue, identified by investors such as Mann and analysts at JPMorgan Chase & Co., stems from language buried in the more than one hundred pages of prospectuses for many 'prime jumbo' and 'Alt-A' home-loan securities."

Orange County Register - "BofA chief buys stock, price jumps 30%" (1-21-09)

"Bank of America CEO Kenneth Lewis on Tuesday spent about $1.2 million to buy 200,000 common shares of the bank, reports Reuters. Other directors bought more than 300,000 shares, according to a separate report in the Wall Street Journal. Other investors appear to have reacted favorably to insiders buying BofA stock; its price rose more than 30% today to close at $6.68. (Of course, the 30% gain equates to $1.58.)"

Orange County Register - "O.C. homebuilding at post-World War II low" (1-21-09)

"Orange County governments issued 3,156 building permits to homebuilders in 2008, the slowest year in a stream of figures dating back to 1946. The non-profit Construction Industry Research Board reports that the level of homebuilding here has fallen to just 7% of the amount in 1963 — O.C. homebuilding’s pinnacle — when residential construction peaked at 44,656 units."

Orange County Register - "O.C. furniture mall loses $63 million in value" (1-21-09)

"The South Coast Home Furnishings Centre in Costa Mesa — conceived as a one-stop outlet for home remodelers — has lost customers, tenants and finally ended up in receivership after rents failed to cover loan payments and operating expenses. The 20-acre property off the I-405, which sold for $98 million in the summer of 2007, went up for sale for $65 million in September, just as the economy began to implode. By December, the receiver and the lender concurred that a $35 million offer was the best they could get for the 300,000-square-foot center."

Inman News - "Obama, Dems ready to move on housing" (1-20-08)

"The Obama administration moves into the White House with the authority to implement the second half of the $700 billion Toxic Asset Relief Program, or TARP. In a 52-42 vote, the Senate last week shot down a resolution that would have blocked further borrowing to fund the program. Both the House and Senate would have had to approve their own resolutions to cap TARP borrowing at $350 billion. With the Senate declining to stand in the way, the issue has largely been resolved -- although Congress could still place limitations on how the next round of TARP funds is used."

CNN - "The lowdown on getting a low down payment loan" (1-20-08)

"The credit crunch has made it hard for anyone to get a loan these days - and borrowers who can only make a small down payment are facing even tougher odds. But it's not impossible to land a low-down payment loan. The Federal Housing Administration (FHA) is actually still offering 3.5%-down mortgages to qualified buyers, even as the subprime loans that these types of borrowers had traditionally relied upon have dried up."

Bloomberg - "Roubini Predicts U.S. Losses May Reach $3.6 Trillion" (1-20-08)

"U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is 'effectively insolvent,' said New York University Professor Nouriel Roubini, who predicted last year’s economic crisis."

Bloomberg - "Obama Becomes Banker-in-Chief in Credit Market Freeze" (1-20-08)


"Since the Bush administration and Congress last year approved the $700 billion Troubled Asset Relief Program that injected capital into Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., individuals and companies aren’t getting any of it as fourth-quarter lending by the biggest banks by assets plummeted. The asset-backed market, which is supposed to enable banks to keep lending by transforming loans into tradable securities, remains frozen, leaving would-be lenders unable to package and sell mortgages, credit-card debt and auto loans."

Orange County Register - "Builder Laing confirms layoffs, ponders all options" (1-20-08)

"Emaar paid $1 billion for Laing in June 2006, just as the U.S. home market was peaking. The builder has cut an undisclosed number of jobs, particularly in California and Colorado, quoting a spokeswoman who added that the builder may stop sales on certain projects and shut some of its offices. Emaar’s borring $2 billion after its share splunged 85% last year."

Orange County Register - "Foreclosures make up smaller share of O.C. home sales" (1-20-08)

"Numbers are up dramatically from a year ago. In December 2007, just 20 percent of the 1,300 resales, or 260 homes, had been foreclosed upon in the previous year, DataQuick reported. Foreclosures made up just 6 percent of resales in August 2007."

Realty Times - "Real Estate Outlook: Change Anticipated" (1-20-08)

"The national economic headlines continue to be bearish, but some of the underlying fundamentals for real estate are pointing to better days ahead. Take home mortgage rates: Last week thirty year fixed rates dropped below the seemingly-unbreakable five percent barrier for the first time on record, according to the Mortgage Bankers Association. New thirty year loans went for an average 4.89 percent, while fifteen year loans were just above 4.6 percent."

Realty Times - "Washington Report: Will the Stimulus Help Housing?" (1-20-08)

"The House Democrats' massive $825 billion stimulus package unveiled on Capitol Hill last week is -- as expected -- mainly focused on non-real estate issues. It did, however, offer a little tax improvement for first-time homebuyers using the current $7,500 tax credit by making it non-repayable."

Bloomberg - "Obama Bank Rescue May Make New Effort to Resolve Toxic Assets" (1-18-08)

"President-elect Barack Obama is likely to back a financial-rescue effort that channels capital to banks and deals with troubled assets clogging balance sheets, according to people familiar with the matter. Obama’s team will also use part of the $350 billion remaining from the Troubled Asset Relief Program to help stem foreclosures and assist municipalities that are having trouble borrowing, the people said. The Federal Reserve and Federal Deposit Insurance Corp. are advocating a government-backed 'bad' or 'aggregator' bank to acquire hundreds of billions of dollars of troubled securities now held by lenders."

Bloomberg - "Housing Starts Probably at Record Low: U.S. Economy Preview" (1-18-08)

"American builders probably broke ground in December on the fewest houses on record as sales and credit dried up, economists said before reports this week. Housing starts fell 2.7 percent last month to an annual rate of 605,000, the lowest level since the Commerce Department started compiling data in 1959, according to the median estimate in a Bloomberg News survey. Building permits, a sign of future projects, also probably dropped to a record low."

DQNews - "California November 2008 Home Sales" (1-19-08)

"An estimated 32,163 new and resale houses and condos were sold statewide last month. That was down 24.0 percent from 42,293 in October and up 25.7 percent from 25,578 for November last year. Sales have increased on a year-over-year basis the last five months. California sales for the month of November have varied from last year's low to a peak of 60,326 in 2004, the average is 40,592. MDA DataQuick's statistics go back to 1988."

DQNews - "Southland home sales off bottom" (1-19-08)

"A total of 19,926 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 19.2 percent from 16,720 for November, and up 50.5 percent from 13,240 for December 2007, according to MDA DataQuick."

NAR - "Realtors® Continue Push for Comprehensive Housing Strategy" (1-16-08)

"NAR expressed support for Chairman Barney Frank’s, D-Mass., proposal, H.R. 384, the TARP Reform and Accountability Act, introduced last week. This bill contains key components of NAR’s Housing Stimulus Plan, including enacting a mortgage buy-down program to reduce interest rates below prevailing rates, increasing foreclosure prevention and mitigation efforts, and providing needed liquidity to the residential and commercial mortgage markets to ensure that financing is available. 'We also applaud the chairman’s efforts to strengthen accountability and increase transparency in the use of TARP funds,' McMillan said."

Yahoo - "Inflation slows to half-century low in 2008" (1-16-08)

"Inflation slowed to a half-century low last year and industrial output fell for the first time since 2002, data showed on Friday, as the recession deepened toward year-end, raising the specter of deflation.With consumer confidence remaining at depressed levels, the reports suggested the economy could take longer to pull out of a downturn that is on track to be the longest and possibly deepest since World War Two"

Washington Post - "Multiple Applications for Mortgages" (1-16-08)

"As mortgage interest rates continue falling to new lows, a growing number of borrowers are applying to more than one lender to increase their chances of getting approved for refinancing. Anecdotal evidence suggests that only about half of the borrowers trying to refinance are getting approved, down from 60 to 70 percent during previous refinancing booms, said Doug Duncan, chief economist at mortgage financier Fannie Mae. As a result, borrowers are getting frustrated and anxious."

Bloomberg - "GE Capital May Cut as Many as 11,000 Jobs This Year" (1-16-08)

"General Electric Co.’s finance arm may cut 7,500 to 11,000 jobs, or at least 10 percent of its workforce, because of the global financial slump, people familiar with the company’s plans said."

Bloomberg - "Bank of America Slides After Quarterly Loss, Bailout" (1-16-08)

"Bank of America Corp., the largest U.S. bank by assets, slid 14 percent in New York trading after posting its first loss since 1991 and receiving emergency government funds to ease the acquisition of Merrill Lynch & Co."

NAR - "Many Home Buyers Need Higher Loan Limits, Upper-End Stalled" (1-15-08)

"The drop in mortgage loan limits for conventional financing at the end of 2008 is hurting home sales and trade-up activity in higher price ranges across the country, according to the National Association of Realtors®. The latest existing-home sales data shows transactions under $400,000 are 3 percent below a year ago. However, sales of homes priced at $750,000 or more have declined a whopping 47 percent."

CBIA - "Frozen Credit Markets Keep California New Home Market Cold in November, CBIA Announces" (1-15-08)

"The pace of home sales at California new-home communities remained glacially slow in November following the October credit freeze, the California Building Industry Association reported today. Robert Rivinius, CBIA’s President and CEO, said the continued depression in the state’s homebuilding industry will only improve if state and federal lawmakers quickly deal with the foreclosure situation and pass economic stimulus measures that have been proposed to jump-start the crucial economic sector. "

Chicago Tribune - "Fixed-mortgage rates fall below 5%" (1-15-08)

"Rates on 30-year mortgages set a record for a fifth straight week by dropping to below 5 percent, the lowest mark since Freddie Mac started tracking the data in 1971. Mortgage rates have been dropping since late November, when the Federal Reserve said it was going to pump money into the banking system by buying $500 billion in mortgage-backed securities to get banks to lend more money and perhaps aid the ailing U.S. housing market"

The San Diego Union Tribune - "New jobless claims rise, economy keeps shrinking" (1-15-08)

"The number of newly laid off workers seeking unemployment benefits rose more than expected last week, the latest sign the economy is shrinking and unlikely to rebound anytime soon. The figures came a day after the government said retail sales dropped sharply in December and the Federal Reserve issued a gloomy economic assessment."

CNN - "Foreclosures up a record 81% in 2008" (1-15-08)

"foreclosure filings spiked by more than 81% in 2008, a record, according to a report released Thursday, and they're up 225% compared with 2006. A total of 861,664 families lost their homes to foreclosure last year, according to RealtyTrac, which released its year-end report Thursday. There were more than 3.1 million foreclosure filings issued during 2008, which means that one of every 54 households received a notice last year"

NAR - "Effective Implementation Critical for Home Buyer Tax Credit Success" (1-14-08)

"If all home buyers become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales – enough to meaningfully draw down excess housing inventory, according to the National Association of Realtors®. An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase."

Mortgage Bankers Association - "Record Low Mortgage Rates Boost Refinance Activity in Latest MBA Weekly Survey" (1-14-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 9, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 1324.8, an increase of 15.8 percent on a seasonally adjusted basis from 1143.8 one week earlier. On an unadjusted basis, the Index increased 95.7 percent compared with the previous week and was up 52.4 percent compared with the same week one year earlier."

Bloomberg - "Bankruptcy Law Changes May Not Cut Home Foreclosures" (1-14-08)

"A proposed change to bankruptcy laws that would allow judges to reduce consumers’ mortgages may not succeed in reducing the foreclosures that have been dragging down property prices, according to a Barclays Capital strategist. Some borrowers would later default on their reworked loans while others, who wouldn’t benefit by filing because their incomes are high enough to handle their debts, would face 'a greater temptation' to abandon their obligations if their neighbors get bailed out, Glenn Boyd, head of U.S. asset-backed securities strategy at Barclays in New York, said yesterday."

Inman News - "Fannie Mae won't evict renters" (1-14-08)

"Fannie Mae will allow qualified renters to sign month-to-month leases and stay on in homes it forecloses on -- without requiring a security deposit, credit check or payment history -- while it markets the homes for sale."

Bloomberg - "U.S. Home Prices Will Continue to Tumble Until 2010, PMI Says" (1-14-08)

"U.S. home prices, already down 23 percent from their July 2006 peak, will continue to fall until the third quarter of next year, PMI Mortgage Insurance Co. said in a report."

Bloomberg - "Commercial Building in U.S. to Drop 11% Percent, Architects Say" (1-14-08)

"Construction spending on offices, shopping centers, hotels and industrial buildings in the U.S. will fall this year and next as the recession prompts businesses to delay or cancel plans, the American Institute of Architects said. Non-residential construction likely will drop 11 percent this in 2009 and 5 percent in 2010, the Washington-based group said today in its semi-annual Consensus Construction Forecast. The declines will follow an estimated 8 percent to 9 percent gain in non-residential construction spending last year, the institute said."

Bloomberg - "Lennar Adds Minkow and Fraud Discovery to Libel Suit" (1-14-08)

"The amended complaint, filed yesterday in the 11th Judicial Circuit Court in Miami-Dade County, Florida, claims Minkow and his company were hired by Nicolas Marsch III, a former partner with Lennar in a joint venture construction project in California. In a deposition yesterday, Marsch said he recently paid Minkow $50,000 to $100,000 for unnamed services, Lennar said today in a statement."

CNN - "Taming inflated home appraisals" (1-14-08)

"Now, the Federal Housing Finance Agency (FHFA), the government agency created to oversee Fannie Mae and Freddie Mac, has announced a plan to curb the influence that loan originators exert on appraisers to overvalue homes. A new Home Valuation Code of Conduct, which will take effect this May, is an attempt to improve the reliability of appraisals for mortgages sold to the two companies. The guidelines prohibit lenders from coercing, extorting, colluding with, intimidating or bribing appraisers into making inaccurate appraisals."

Orange County Register - "O.C. pre-foreclosure filings hit four-month high" (1-14-08)

"Foreclosureradar.com reports banks filed 2,423 notices of default in December in Orange County, up 96% from the prior month. It was the highest monthly total since August’s peak of 2,539."

NAHB - "Builders Testify Before Congress On Use Of TARP Funds" (1-13-08)

"As Congress considers releasing the second half of the Treasury’s $700 billion Troubled Asset Relief Program (TARP), the National Association of Home Builders (NAHB) today urged lawmakers to use a portion of the funds to stem the rising tide of foreclosures and increase the flow of credit for housing production. NAHB also urged passage of legislation to stimulate housing demand."

The Boston Globe - "Calif. losing golden allure" (1-13-08)

"The number of people leaving California for another state outstripped the number moving in from another state during the year ending on July 1, 2008. California lost a net total of 144,000 people during that period - more than any other state, according to census estimates. That is about equal to the population of Syracuse, N.Y."

The Washington Post - "America Hunkers Down: A Nation of Savers?" (1-13-08)

"There's evidence to suggest that more consumers are hunkering down. After hovering near zero for much of the decade, savings as a portion of disposable income rose from 2.4 percent in October to 2.8 percent in November, according to the Bureau of Labor Statistics. Also in November, auto loans, credit cards and other forms of consumer borrowing fell by $7.9 billion, the largest dollar amount since recordkeeping began, more than 50 years ago."

Bloomberg - "State Pensions’ $865 Billion Loss Affects New Workers" (1-13-08)

"State governments from Rhode Island to California have run up estimated pension-fund losses of $865.1 billion, forcing some to cut benefits for new hires. Assets for 109 state funds declined 37 percent to $1.46 trillion over the 14 months ended Dec. 16, according to the Center for Retirement Research at Boston College. The Standard & Poor’s 500 Index of stocks fell 41 percent in the period."

Bloomberg - "Hedge Funds Lost $350 Billion in 2008 Amid Global Market Rout" (1-13-08)

"Hedge funds lost $350 billion globally in 2008, the most on record, as the biggest financial crisis since the Great Depression crippled returns and caused investors to pull money out, according to an industry report. About 90 percent of the money was lost in the three months to the end of November, according to a preliminary report published today by Singapore-based data provider Eurekahedge Pte. Funds that invested in North America declined the most, posting a drop of $183 billion for the year, the report said."

Bloomberg - "Bernanke Urges ‘Strong Measures’ to Stabilize Banks" (1-13-08)

"Federal Reserve Chairman Ben S. Bernanke warned that a fiscal stimulus won’t be enough to spur an economic recovery and that the government may need to buy or guarantee banks’ tainted assets to revive growth."

Bloomberg - "Synovus, Comerica May See Commercial Real Estate Bust" (1-13-08)

"Synovus Financial Corp.,Comerica Inc. and Huntington Bancshares Inc. are among regional banks that may face a second wave of real-estate loan losses, this time for shopping centers and residential construction projects. Losses in commercial real estate excluding construction are expected to increase 10-fold, Deutsche Bank AG analyst Mike Mayo said in a Jan. 5 research note. Moody’s Investors Service said yesterday it’s considering a downgrade of Synovus because of commercial real-estate losses."

Bloomberg - "Seattle FHLB Likely Short of Capital on Mortgage Debt" (1-13-08)

"The Federal Home Loan Bank of Seattle said it will suspend dividends and 'excess' stock repurchases, becoming the second of the government-chartered lending cooperatives to say its capital may be running low. The likely capital shortfall as of Dec. 31 was caused by 'unrealized market value losses' on residential mortgage bonds without government backing, the bank said in a U.S. Securities and Exchange Commission filing today. Washington Mutual Inc. and Merrill Lynch & Co. had been the biggest stakeholders and borrowers in the Seattle Federal Home Loan Bank, or FHLB."

Orange County Register - "Only 4% of O.C. buyers using adjustable mortgages" (1-13-08)

"In November, DataQuick figures show that just 4% of the homes bought using mortgaged were financed with adjustable-rate terms on the first mortgage."

Orange County Register - "House bargains hit Villa Park" (1-13-08)

"Buyers could find more houses offered for less than$1 million – considered bargains in one of the wealthiest cities in Orange County. In 2007, just two houses were purchased for that amount. Last year, there were 14 such houses, the lowest selling for about $600,000. Higher-priced houses – those more than $2 million – are selling at a slower pace. One $2.3 million house has been on the market for more than 800 days. Of the nine sales since November, six were of foreclosed properties."

Orange County Register - "Chase halts home lending via brokers; could lay off 100" (1-13-08)

"Chase, a unit of JPMorgan Chase, said today it’s closing its unit that makes home loans via mortgage brokers and will instead focus entirely on its retail branches, including 2,200 it picked up by acquiring the assets of failed Washington Mutual. The change jeopardizes more than 100 jobs at Chase’s Orange office. That office is one of four nationwide operations centers tied to brokers, said company spokesman Tom Kelly said."

Yahoo - "FDIC asks banks to monitor use of bailout money" (1-12-08)

"Federal regulators are asking financial institutions to monitor their use of government money received under the $700 billion rescue plan and other support. Banks and other financial institutions should track how the federal money or guarantees they received helped them boost 'prudent lending' and efforts to help at-risk borrowers avoid foreclosures, the Federal Deposit Insurance Corp. said Monday in a directive issued to the roughly 5,100 state-chartered banks and savings and loans for which it is the primary regulator."

Bloomberg - "U.S. Housing Market Still Offers Hidden Value" (1-12-08)

"If you were searching for pockets of optimism in the U.S. housing market, where would you look? Easy guesses would be to avoid Detroit, Cleveland or any cities with domestic automobile plants or troubled manufacturers. Then there are the foreclosure gulches of Central and Southern California, which include the Modesto, Stockton, Bakersfield, Riverside and Sacramento areas. Those cities will take a long time to recover. Too many homes there were sold at bubble prices to people with dodgy finances."

Bloomberg - "Gross Bets on Washington After Housing Collapse Wager" (1-12-08)

"The collapse of the U.S. housing market helped Bill Gross outperform 99 percent of his fund- manager peers over the past five years. Now he’s betting on securities that may benefit from rescue efforts in Washington. The 64-year-old co-chief investment officer at Pacific Investment Management Co. is urging investors to anticipate which assets will benefit as the government struggles to boost the economy. Last week he recommended municipal bonds, inflation- protected Treasuries and debt the U.S. government plans to buy. In the past six months, Gross bought senior bank debt, agency mortgage securities and preferred shares in financial companies, all before the government did the same"

Yahoo - "Bush agrees to Obama entreaty for bailout funds" (1-12-08)

"Acting at Barack Obama's behest, President George W. Bush on Monday asked Congress for the final $350 billion in the financial bailout fund, effectively ceding economic reins to the president-elect in an extraordinary display of transition teamwork."

Orange County Register - "O.C. distressed homes for sale at 10-month low" (1-12-08)

"The distressed inventory, foreclosures and short sales, dropped by 401 homes over the past month, bringing the total to 5,118, its lowest point since March of last year. That’s a 7.2% drop. Distressed properties now make up 45.3% of the inventory, a slight drop over the past couple of weeks. 69% of all pending sales are distressed sales right now. Obviously, the distressed inventory is helping fuel demand. 79% of all distressed homes are isolated below $500,000 and 92% are found below $750,000. It is no wonder that the lower end of the market has been a lot hotter than the rest of the market."

Los Angeles Times - "Who does the appraisal, and how much they're paid, matter" (9-11-08)

"When you apply for a mortgage to buy or refinance a house, should you be concerned that your appraiser is being paid much less -- maybe just half -- of the $300 to $600 you're charged on your settlement sheet? Should you know who pockets the rest or that cut-rate fees are too low to attract the most experienced, highly trained appraisers? Should you care that the appraiser might be pushed to come up with a number so fast -- almost overnight in some cases -- that he or she doesn't have the time to do a proper inspection and accurate evaluation of comparable properties, pending sales contracts and local market trends?"

Ashes Ashes All Fall Down - "He's No Longer Doctor Doom. Now He's Doctor Death." (9-11-08)

"When people take on increasing amounts of debt, they begin to feel hopeless. In fact, an increasing debt load with no way to pay it off is indicative of hopelessness. The overwhelming majority of folks who take on increasing amounts of debt know that they will not, in fact, win the lottery or have some other financial windfall which will allow them, at some point in the future, to get out of debt. And so with this reality bearing down on them, why do so many people nevertheless run up credit card debts into the tens if not hundreds of thousands of dollars? The most widely accepted argument is that people need to employ debt in their struggle to survive: Individual or familial deficit spending as a way to pay the bills and put food on the table."

Seeking Alpha - "Wealth Watch: Redefining Rich and Poor In a Shrinking Global Economy" (1-11-08)

"Many people fear the word depression, thinking back to how bad things were during the Great Depression. From 1929-1933, GDP fell about 1/3, and then it fell from mid-1937 to mid-1938 by another 18%. The worst GDP decline since then was a 6% cumulative loss in the 1974-75 recession. Given the current set of circumstances, it would seem to me that though things aren't likely to be as bad as the Great Depression, they will certainly be worse than the 1974-1975 recession by far. I expect GDP to decline by 10-15% ultimately. How it plays out will depend on many factors that are unknown, but one that could have the most meaningful impact is the actions of our government and those of other nations as well. We can't count on government to fix this problem, but we can hope that it helps minimize the imbalances without policy errors that lead to unintended consequences and potentially worse outcomes."

Orange County Register - "Realtor eyes no O.C. condo bottom in 2009" (1-10-08)

"2009 is going to be another good year for buyers; but not a hot year for condo sellers. Prices are continuing to decline and distressed condo inventory has grown to more than 50% of the active inventory. On the average most condo owners stay in their condos on an average of 3 to 5 years, so most would-be sellers will have purchased peak of market or pre-construction condos. Most of the condo owners that purchased a condo between 2004 and 2006 will look to sell within the next couple years, so supply will continue to outpace demand over the next couple years. High-rise condos will take a bigger beating than any other segment of the condo market because of cost of ownership and the difficulty to get a loan in these buildings, especially with the new loan guidelines. Many of the high-rise buyers are buying second homes may not be willing to plop down the 30% to 35% down payment requirements many lenders are requiring and are certainly being cautious about overpaying in any event."

Orange County Register - "Treasury yields seen rising, mortgage rates flat" (1-10-08)

"With congressional budget analysts predicting a $1.2 trillion deficit this year and a government stimulus package in the works, there is no doubt a huge supply of Treasuries is going to hit the market. If O’Donnell is correct and demand is flat, then bond yields should rise. Traditionally, rates on 30-year fixed-rate mortgages have loosely moved up or down in relation to 10-year Treasury yields"

NAR - "Realtors® Urge Congress to Increase FHA Funding" (1-9-08)

"FHA’s market share has increased from a low of 2 percent in 2006 and is expected to grow to over 30 percent in 2009. FHA loans are rapidly becoming the only source of funding for many consumers, particularly those who are first-time home buyers and borrowers with low downpayments or less than perfect credit."

The Boston Globe - "Banks' mortgage rates fall below 5%" (1-9-08)

"JPMorgan Chase & Co. is advertising 30-year mortgages as low as 4.75 percent on its website, Wells Fargo & Co. has an offer for 4.875 percent, and Bank of America Corp. has rates at 5 percent. The offers are for borrowers with excellent credit who put 20 percent down."

The Washington Post - "Lenders Backlogged By Refinancing Rush" (1-9-08)

"Bank of America, which started shedding 7,500 employees after its July merger with Countrywide, recently yanked 300 workers from its home equity line department to help deal with refinancing requests, said Matt Vernon, the bank's national sales executive"

Bloomberg - "Congressional Panel Blasts U.S. for Failing to Aid Homeowners" (1-9-08)

"The panel set up by Congress to oversee the U.S. Treasury’s $700 billion financial markets rescue criticized the Bush administration for failing to stem mortgage foreclosures while bailing out banks. The Congressional Oversight Panel, headed by Harvard Law Professor Elizabeth Warren, also said a lack of transparency about the fund 'erodes the very confidence' the program is supposed to restore. The group reiterated criticisms of Treasury Secretary Henry Paulson’s shifting strategy for the Troubled Asset Relief Program."

Bloomberg - "Paulson Bailout Didn’t Give Taxpayers Buffett’s Terms" (1-9-08)

"The Treasury secretary has made 174 purchases of banks’ preferred shares that include certificates to buy stock at a later date. He invested $10 billion in Goldman Sachs in October, twice as much as Buffett did the month before, yet gained warrants worth one-fourth as much as the billionaire, according to data compiled by Bloomberg. The Goldman Sachs terms were repeated in most of the other bank bailouts."

Bloomberg - "U.S. Economy: 2008 Payrolls Drop Biggest Since 1945" (1-9-08)

"The U.S. lost more jobs in 2008 than in any year since 1945 as employers fired another 524,000 people in December, indicating a free-fall in the economy just days before President-elect Barack Obama takes office."

Bloomberg - "Mortgage Servicing Loses Luster as Bad Loans Mount" (1-9-08)

"Bank of America Corp., GMAC LLC, and WL Ross & Co. are among mortgage servicers that have endured billions of dollars in unexpected costs and added thousands of workers to handle rising foreclosures, denting a business once viewed as a safe haven from the housing market’s collapse. Loan servicers send out bills, collect debts and keep records, tasks that analysts predicted would provide a steady stream of fees even if home sales dropped. The companies didn’t count on the U.S. push to modify up to 2 million defaulted home loans, and contracts that require them to cover mortgage investors when homeowners miss payments."

Bloomberg - "KB Home Drops as Builder's Loss Exceeds Estimates" (1-9-08)

"KB Home, the fourth-largest U.S. homebuilder, reported a fourth-quarter loss exceeding analysts' estimates, sending shares down as much as 14 percent as the company predicted more pain for the housing market in 2009. The builder had a net loss of $307.3 million, or $3.96 a share, compared with a median estimated loss of $96.9 million, or $1.19 a share, by 10 analysts in a Bloomberg survey. The loss narrowed from $772.7 million, or $9.99 a share, a year earlier, Los Angeles-based KB Home said today in a statement. Revenue fell 56 percent to $919 million."

Bloomberg - "Lennar Declines After Minkow Alleges ‘Ponzi Scheme’" (1-9-08)

"Lennar Corp., the third-largest U.S. builder by market value, fell as much as 28 percent in New York trading after Barry Minkow’s Fraud Discovery Institute alleged that the company operates joint ventures “like a Ponzi scheme.” Lennar denied the allegations"

Bloomberg - "Frank Says Obama Backs $729,750 Fannie, Freddie Limit" (1-9-08)

"President-elect Barack Obama agreed with House Democrats to increase the limit on loans Fannie Mae and Freddie Mac can purchase back to $729,750 in high-cost areas, House Financial Services Chairman Barney Frank said."

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%."

Mortgage Bankers Association - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (1-7-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 2, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 1143.8, a decrease of 8.2 percent on a seasonally adjusted basis from 1245.7 one week earlier. This week’s results included an adjustment to account for the shortened week due to the New Year’s Day holiday. On an unadjusted basis, the Index decreased 8.9 percent compared with the previous week and was up 28.3 percent compared with the same week one year earlier."

San Francisco Chronicle - "Report says foreclosures, defaults up in 2008" (1-7-08)

"The number of scheduled foreclosure sales and defaults in core areas of Northern and Southern California exceeded a half million during 2008, up 132 percent from the previous year, according to a report by Default Research Inc. Notices of defaults (the first step in the foreclosure process) and notices of trustee sales (which often but don't always lead to actual foreclosures) reached 525,356 in 15 California counties last year, reported the Mt. Pleasant, Pa., company that sells information about distressed real estate to agents, lenders, investors and others. In the Bay Area counties of Alameda, Contra Costa, San Francisco and Solano, the annual total climbed 180 percent to 85,381."

Yahoo - "Paulson says changes needed at Fannie, Freddie" (1-7-08)

"Congress and the next administration must decide the proper role government should play in supporting home ownership in light of the severe economic costs imposed on the nation from the bursting of the housing bubble, Paulson said. The government in September took control of Fannie and Freddie, placing them in conservatorship. Paulson offered thoughts on a variety of possible solutions on what should follow that move, but did not endorse any."

Bloomberg - "U.S. Apartment Rents Fall, Vacancies at 4-Year High, Reis Says" (1-7-08)

"U.S. apartment rents fell in the fourth quarter from the third as the national vacancy rate climbed to a four-year high of 6.6 percent, Reis Inc. said. Job losses and lower wages are cutting into the pool of potential renters in their twenties and thirties, defying the expectation that apartments would benefit from the housing slump, the New York-based research firm said."

Bloomberg - "U.S. Shopping Mall Vacancies Reach 10-Year High as Stores Fail" (1-7-08)

"Vacancies at U.S. malls and shopping centers approached 10-year highs in the fourth quarter, and are set to rise further as declining retail sales put more stores out of business, research firm Reis Inc. said. Regional mall vacancies rose to 7.1 percent last quarter from 6.6 percent in the third quarter. It was the highest vacancy rate since Reis began tracking regional malls in 2000, as well as the largest quarter-to-quarter jump in vacancies, according to New York-based Reis."

Bloomberg - "Trade Groups Seek Forgiven-Debt Tax Break Given to Homeowners" (1-7-08)

"Commercial real estate companies, the U.S. Chamber of Commerce and companies partly owned by private- equity firms are pushing Congress for a temporary tax break on forgiven debt similar to relief given in 2007 to homeowners facing foreclosure. The provision would let solvent businesses negotiate new terms with lenders, lowering the amounts they owe, without being required to pay taxes on the forgiven portions of the loans. The proposal may emerge as a priority among Republicans for inclusion in a stimulus package that President-elect Barack Obama seeks to pass with bipartisan support."

Orange County Register - "SoCal heating gas 19% cheaper" (1-7-08)

"SoCal’s Gas. Co. says that its residential customers will pay 55.448 cents per therm for natural gas in January to heat their homes and fire their stoves. (Therm’s industry lingo for a measure of gas use. Average family uses 75 therms in a winter month!) January’s price is virtually flat from December and 19% vs. January 2008"

Realty Times - "Long-Term Rates Fall for Ninth Consecutive Week, Setting Another New Low" (1-7-08)

"Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.10 percent with an average 0.7 point for the week ending December 31, 2008, down from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 6.07 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971."

Realty Times - "Real Estate Outlook: What's in Store for 2009?" (1-7-08)

"In a research report issued late in December, Bove said he sees a positive dynamic taking shape in the current cycle. The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector."

Realty Times - "Market Conditions " (1-7-08)

"Along with many other housing indicators this past month, the National Association of Realtors' Pending Home Sales Index has shown a decline for November. This comes as no surprise to many analysts -- as buyers face an ailing credit market and increased unemployment."

NAR - "Economic Slump Weakens Pending Home Sales" (1-6-08)

"The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001"

CNN - "Your house can make you sick" (1-6-08)

"Banishing toxins from your home isn't an exciting improvement, but it's a crucial one, since many states counsel home buyers to do environmental checks before closing on a home. Below you'll find five of the most dangerous and common toxins to watch for, along with the most wallet-friendly ways to nip them in the bud."

Bloomberg - "Ameriprise Clients Left in Lurch Funding Paris Hilton Film Flop" (1-6-08)

"Christopher Coulther offered his clients a deal that was hard to resist. Promising a 100 percent return on Costa Rican real estate, he enticed 98 people to invest almost $12 million. Unknown to customers, Ameriprise, the largest U.S. financial planning company, hadn’t approved the offer, even though Coulther had asked for the firm’s blessing, according to a lawsuit investors filed after they lost money. Coulther still peddled the venture to customers, some of whom dipped into retirement savings.His alleged sin, marketing an investment his company hadn’t authorized, is known as selling away. It’s the second most frequently cited reason for disciplining brokers and advisers, according to a 2007 American Bar Association task force report."

Bloomberg - "Metro-Area Foreclosure Sales Tripled in First 10 Months of 2008" (1-6-08)

"Foreclosure sales in the 25 largest U.S. metropolitan areas almost tripled in the first 10 months of last year as rising unemployment and falling home values made it tougher for homeowners to sell or refinance their mortgages. Motivated sales, which include foreclosure auctions and banks selling homes taken over for non-payment, increased 193 percent from January to October 2008 from a year earlier, New York-based real estate data company Radar Logic Inc. said today in a report. Conventional sales rose 6 percent in that period."

Bloomberg - "Banks, Homebuilders May Convert Losses Into Cash With Tax Break" (1-6-08)

"Investment banks, homebuilders and manufacturers who failed to win passage of a tax break in last year’s stimulus that would convert losses into cash have persuaded President-elect Barack Obama to back their cause. A provision in a fiscal stimulus measure being crafted by Obama and congressional leaders would let businesses use operating losses in 2008 and 2009 to claim a refund of taxes paid in the previous five years, according to transition officials and congressional aides familiar with the talks."

Orange County Register - "Quake could balloon Calif. foreclosure woes" (1-6-08)

"A new insurance risk report on natural disasters by insurance Aon/Benfeld suggests that a large earthquake could severely rattle California’s already damaged housing market"

Orange County Register - "Forecaster Watts eyes slow recovery for pricier O.C. homes" (1-6-08)

"The 'bottom' of real estate will be in phases. I expect we will firm up the prices below $500,000 before the end of 2009. However, prices above $500,000 will still not see a bottom in 2009."

Orange County Register - "Local apartment rents expect to fall" (1-6-08)

"It may take landlords awhile to catch on, but rising vacancies should result in lower apartment rents in 2009, a local Grubb & Ellis Co. manager says. Grubb & Ellis, a Santa Ana-based national commercial brokerage, issued its 2009 outlook saying that Orange County is the third-best multi-family market to invest in out of 56 U.S. apartment markets."

Bloomberg - "U.S. Construction Spending Falls Less Than Forecast" (1-5-08)

"Spending on U.S. construction projects fell less than half as much as forecast in November, reflecting gains in commercial and government building that partially cushioned the slump in residential real estate. The 0.6 percent decline followed a 0.4 percent drop the prior month that was smaller than previously reported, the Commerce Department said today in Washington. The median estimate of economists surveyed by Bloomberg News was a 1.4 percent slide."

Bloomberg - "Paulson’s Pellegrini Said to Resign to Start Own Hedge Fund" (1-5-08)

"Paolo Pellegrini, the hedge-fund manager who helped Paulson & Co. make more than $3 billion in 2007 on bets the U.S. housing bubble would burst, resigned to start his own fund, a person familiar with the matter said."

Bloomberg - "Non-Agency Mortgage Bonds Rallied as Rates Declined" (1-5-08)

"U.S. mortgage bonds without government support rose last month, as lower home-loan rates boosted investor demand. Securities initially rated AAA and backed by prime-jumbo mortgages with five years of fixed rates climbed 5 cents on the dollar in December to 75 cents, according to JPMorgan Chase & Co. data. Bonds of 30-year Alt-A loans with “conforming” balances rose to 45 cents less than similar Fannie Mae bonds, from 52 cents, New York-based JPMorgan said in a Jan. 2 report."

Orange County Register - "Low-end LA/OC home-price loss nearly twice high end" (1-5-08)

"In October, lower-priced homes in LA/OC were selling 38.8% below a year ago. Higher-prices homes sold at just a 20.6% discount vs. a year ago. See chart of annual change rates at right! There’s now been a double-digit, percentage-point gap between cheaper housing and the top in terms of price losses for nine consecutive months. The last time this happened was 1991, and then only for two months."

Realtors List - "Washington Report: Who Chooses Appraisers?" (1-5-08)

"Mortgage brokers -- who still account for a significant percentage of new home loan originations -- are totally banned from selecting appraisers. Realtors are also specifically forbidden from having any say or influence over the choice of an appraiser on a sale transaction. Well, you might ask: Since appraisers in the past have often complained about pressure from loan brokers and realty agents to 'hit the number' -- that is, turn in valuations high enough to allow transactions to go to closing -- aren't they happy about the new prohibitions? They're not. Many local appraisers have built up long-standing, legitimate relationships with brokers, small lenders and Realtors as sources of assignments. Under Fannie's and Freddie's new rules , they fear, the mortgage business will shift away from local brokers to large national lenders, who'll use big 'appraisal management companies' to handle home valuations."

Inman News - "'Cramdowns' on tap in 2009?" (1-5-08)

"Democrats are planning to reintroduce legislation that would allow bankruptcy judges to modify the terms of troubled borrowers' loans -- a move that industry opponents say will lead to higher interest rates and down payments for all borrowers. Rep. Brad Miller, D-N.C., said he plans to introduce a bill today allowing bankruptcy 'cramdowns' of mortgage loan principal, the Wall Street Journal reported. Sen. Richard Durbin, D-Ill., plans to sponsor similar legislation in the Senate, the paper said."

Inman News - "'New IndyMac' to continue loan mods" (1-5-08)

"A group of investors who have agreed to put up $1.3 billion in cash to acquire IndyMac Bank are expected to continue an FDIC mortgage loan modification program that aims to help nearly 50,000 borrowers avoid foreclosure. The FDIC said it will continue to share losses on loans made by IndyMac and provide secured financing to the new owners, who are expected to acquire the failed bank's $16 billion loan portfolio and $6.9 billion in securities in late January or early February."

The Washington Post - "U.S. Debt Expected To Soar This Year" (1-3-08)

"With President-elect Barack Obama and congressional Democrats considering a massive spending package aimed at pulling the nation out of recession, the national debt is projected to jump by as much as $2 trillion this year, an unprecedented increase that could test the world's appetite for financing U.S. government spending."

Seeking Alpha - "U.S. Housing: A False Dawn Recovery in 2009?" (1-4-08)

"Any prospect of a U.S. economic recovery in late 2009/early 2010 is clearly contingent on a stabilization of the housing market; indeed, alongside the scale of the meltdown in China, it is the key factor for global investors. Although median prices nationally have already retraced to early 2004 levels, perspective Japanese residential real estate fell an astonishing 75% in nominal terms over 15 years from the peak in 1990, and retraced back to 1984 levels. A remotely similar outcome in the U.S. would be devastating, given the level of consumer leverage. The latest S&P/Case-Shiller Home Price Indices for October 2008 show continued declines in the value of existing single family homes with 14 of 20 metropolitan areas now reporting declines in excess of 10% yoy. Having peaked nationally at $230k, median house prices are now down to just over $185k, compared to $140k at the beginning of the decade before the bubble began to inflate."

Reuters - "Fed has abandoned monetary policy, critic says" (1-4-08)

"The Federal Reserve has embarked on a campaign of unsupervised industrial policy to end the country's financial crisis, a move that could undermine its independence, a former top U.S. official said on Saturday. John Taylor, who was under secretary of treasury for international affairs from 2001 to 2005, said the explosive growth of the Fed's balance sheet since September was 'unbelievable.'"

The Washington Post - "For Jumbo Loans, an Unlucky 7" (1-3-08)

"Borrowers looking to take advantage of record-low interest rates may be out of luck if they need a home loan that exceeds $625,500. The average rate on these jumbo mortgages hit 7 percent this week for a 30-year fixed loan, even as rates for much smaller loans plunged to 5.28 percent, their lowest level in years, according to HSH Associates."

The Wall Street Journal - "‘Liar Loans’ Earn Their Nickname" (1-2-08)

"The failure of Hope for Homeowners to prevent foreclosures is sparking a blame game in Washington. The Department of Housing and Urban Development, which runs the voluntary program, says Congress made it too restrictive and expensive for homeowners. Congressional leaders say the program’s failure — only 357 people have signed up since Oct. 1 — shows that lenders aren’t willing to modify loans voluntarily and they need to be forced to do so."

Chicago Tribune - "A new year, new demands" (1-2-08)

"Whether you're shopping for a brand new building or an established association, the easy money is gone, said mortgage broker Ken Perlmutter, president of Perl Mortgage in Chicago. Generally speaking, lenders are requiring more verification of buyers' income and credit, and bigger down payments. With new construction, they want to see more presales before they'll close. FHA-backed loans are popular again because of the low down payment requirement, but can't be used to buy into an association that has the right of first refusal.The easiest deals to put together are those with 20 percent or more down for a unit in an existing association, he said."

Bloomberg - "Starwood Rises After Agreeing to Tell Zell of Offers" (1-2-08)

"Starwood climbed $2.90 to $20.80 at 2:31 p.m. on the New York Stock Exchange after earlier reaching $21.22, the biggest intraday jump since Nov. 24. The shares lost 59 percent last year. The third-largest U.S. lodging company said in a filing Dec. 31 after markets closed that it had entered into a confidentiality agreement with Equity Group to give it the opportunity to make a counteroffer. Equity Group said in February that it owned 14.75 million shares of the White Plains, New York- based hotelier."

Bloomberg - "IndyMac Bank’s Sale May Be Announced by FDIC Today" (1-2-08)

"The Federal Deposit Insurance Corp. plans today to announce the sale of IndyMac Bank to at least five investors including J.C. Flowers & Co. and Paulson & Co., according to two people familiar with the transaction. The group plans to appoint Steven Mnuchin, 46, a former Goldman Sachs Group Inc. vice president who is working on the purchase, as chief executive officer of IndyMac’s new holding company, the people said. The FDIC has been seeking a buyer for the Pasadena, California-based lender since a run on its deposits led to its collapse in July."

Orange County Register - "O.C. builder group prez eyes undramatic recovery" (1-2-08)

"I believe we will see the O.C. housing market improve in 2009, although it may not be dramatic turn. New housing starts will remain very low, while we continue to sell through existing inventories. Prices will stabilize, and buyer confidence will begin to return to the market. There is an argument that we will begin to see a supply shortage by the end of 2009 in Orange County."

Realty Times - "Market Conditions" (1-2-08)

"Regionally, according to NAR, existing-home sales in the Northeast dropped 12.0 percent. The median price in the Northeast was $257,700, down 0.1 percent from November 2007. Existing-home sales in the Midwest fell 7.4 percent in November. The median price in the Midwest was $142,400, down 11.2 percent from a year ago."

Realty Times - "Pull Up Stakes, Move Where Home Prices Grow" (1-2-08)

"Alabama, Kentucky, North and South Carolina, Oklahoma, Texas and Tennessee, all revealed price increases of 1.4 percent or better, year-over-year in the third quarter this year. Likewise, North Dakota (at 4 percent, the highest in the nation) and South Dakota (3.9 percent), Montana, Wyoming and Maine all saw some of the greatest price increases in the nation during the same period. Other southern states Arkansas, Kansas, Louisiana, Mississippi and West Virginia, along with Iowa, saw smaller price gains, but gains nevertheless."

Realty Times - "Selling Your Home in a Declining Market" (1-2-08)

"The key to successful selling in a 'declining market' is pricing your home at today's market value, having your home in tip-top condition and being able to work with a prospective buyer on financing needs and terms. Don't let your ego or pride get in the way when determining a price for your home. Put yourself in the buyer's shoes and walk across the street. Curb appeal to a new buyer is a very important and is many-times overlooked."

Realty Times - "What's In, What's Out with Home Buyers in 2009?" (1-2-08)

"Collaborative home pricing. The old days of home sellers configuring a homes price are out. What's new is that the seller with their agent look at closed comparables, set a price, then the buyer and their agent agree or disagree, but in the end, a mortgage lender and their appraiser will set the price, as they are assuming the most risk in the transaction."

Bloomberg - "Journal of a Plague Year: Faith in Markets Cracks Under Losses" (1-01-08)

"It has been a year of record misery: the largest bankruptcy, bank failure and Ponzi scheme in U.S. history; $720 billion in writedowns and losses by financial institutions; $30.1 trillion in market valuation wiped out."

Bloomberg - "U.S. Mortgage Rates Fall to Lowest in Three Decades" (1-01-08)

"U.S. mortgage rates dropped to the lowest in more than three decades as the government stepped up efforts to revive the housing market. The average rate on a 30-year fixed mortgage tumbled for a ninth straight week, to 5.10 percent from 5.14 percent a week earlier, Freddie Mac said in a report today. That’s the lowest on record, according to data that goes back to 1971, the McLean, Virginia-based mortgage buyer said."

Bloomberg - "Mortgage-Bond Spreads Narrow on Fed Plans, Ending Worst Year" (1-01-08)

"Yields on Fannie Mae, Freddie Mac and Ginnie Mae mortgage bonds narrowed relative to government notes after the Federal Reserve said it would buy $500 billion of the securities faster than analysts expected. The difference between yields on Washington-based Fannie’s current-coupon 30-year fixed-rate mortgage bonds and 10-year Treasuries fell 8 basis points to 168 basis points as of 3 p.m. in New York, according to Bloomberg calculations. A basis point is 0.01 percentage point."

Bloomberg - "Muni Sales Dry Up as States Face $42 Billion Deficit" (1-01-08)

"The worst year for municipal bond investors since 1999 may further reduce demand for tax-exempt debt just as state governments face the biggest budget deficits in at least a quarter-century. State and local borrowers sold $385 billion of long-term bonds through yesterday, down 9 percent from 2007, according to data compiled by Thomson Reuters. Next year, sales will drop more than 6 percent to about $364 billion, the least since 2004, based on an average of estimates from London-based Barclays Plc, Merrill Lynch & Co. and Loop Capital Markets LLC."

Los Angeles Times - "Sale of IndyMac to partnership likely" (12-30-08)

"The Federal Deposit Insurance Corp. is nearing a deal to sell IndyMac Bank to a partnership of private New York investors, nearly six months after the Pasadena mortgage lender was taken over by regulators."

Mortgage Bankers Association - "Near Record Low Mortgage Rates Boost Mortgage Applications in Latest MBA Weekly Survey" (12-24-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 19, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 1245.4, an increase of 48.0 percent on a seasonally adjusted basis from 841.4 one week earlier. On an unadjusted basis, the Index increased 50.2 percent compared with the previous week and was up 124.6 percent compared with the same week one year earlier."

New York Times - "Home Prices Fell at Their Sharpest Pace in October" (12-30-08)

"That grim assessment underscored numbers released Tuesday showing that home prices in 20 metropolitan areas across the country dropped at a record rate of 18 percent in October from a year earlier as the fallout from the financial collapse reverberated through the housing market. According to the measure, the Standard & Poor’s/Case Shiller Home Price Index, all 20 cities surveyed reported one-year price declines in October. Prices in 14 of the 20 metropolitan areas fell at a record rate."

New York Times - "Printing Money – and Its Price" (12-27-08)

"Since late August, the Fed has expanded its balance sheet from about $900 billion to more than $2.2 trillion, creating $1.3 trillion that did not exist to replace some of the trillions wiped out by falling house prices and vengeful stock markets. The Fed has taken troublesome assets off the hands of banks and simply credited them with having reserves they previously lacked. In the case of the Treasury, the money comes from the same wellspring that has been financing American debt for decades: Investors in the United States and around the world — not least, the central banks of China, Japan and Saudi Arabia, which have parked national savings in the safety of American government bonds."

Ventura County Star - "Housing market is still in cellar" (12-27-08)

"The county's median price fell to $382,590 last month, down 38.6 percent from $623,510 the previous year, according to CAR. The median, the point where half the homes sold for more and half for less, fell 10.5 percent from $427,650 in October."

Bloomberg - "Fannie Guarantee Won’t Cut Debt Costs, Lockhart Says" (12-30-08)

"The U.S. government probably wouldn’t be able to lower borrowing costs substantially for Fannie Mae and Freddie Mac with an explicit guarantee of their debt, their regulator said."

Bloomberg - "‘Piggyback’ Mortgages May Cut Modifications, Fed Says" (12-30-08)

"Attempts to loosen terms on hundreds of thousands of delinquent home loans may be hindered by so- called piggyback second mortgages that gained popularity during the U.S. housing boom, Federal Reserve researchers said."

Bloomberg - "Fannie Mae’s Portfolio Expands at 9.3% Annual Rate" (12-30-08)

"Fannie Mae’s portfolio of mortgages and related securities grew at a 9.3 percent annualized rate last month, as regulators pushed the government-run company to aid the U.S. housing market."

Bloomberg - "Fed Selects Four Firms to Manage MBS Purchase Plan" (12-30-08)

"The Federal Reserve chose BlackRock Inc., Goldman Sachs Asset Management, Pacific Investment Management Co. and Wellington Management Co. to manage a $500 billion purchase of mortgage-backed securities it plans to complete by June."

The Norris Group is taking a slight break for the holiday. We'll back in full force starting at the beginning of 2009! Thanks for reading and we look forward to seeing you then.

Happy New Year.

The Norris Group is taking a slight break for the holiday. We'll back in full force starting at the beginning of 2009! Thanks for reading and we look forward to seeing you then. Radio shows will continue to be posted during the holiday break.

Happy New Year.