CNN - "Foreclosures to spike as new rates kick in" (3-19-07)

"About 1.1 million additional home foreclosures are expected over the next six years as adjustable-rate mortgages - which made home buying more affordable to U.S. buyers in recent years - reset to higher payments, according to a study by research firm First American CoreLogic."

Business Week - "More states restrict New Century" (3-19-07)

"New Century Financial Corp., the beleaguered home lender to people with weak credit, said Monday it has received cease-and-desist orders from more states, restraining the company from taking new applications for mortgage loans."

Bloomberg - "Company Bond Risk Premiums Surge on Subprime Fallout (Update3)" (3-19-07)

"Risk premiums on investment-grade corporate bonds are at their highest level in more than three months on concern rising delinquencies by subprime borrowers will slow the U.S. economy."

Bloomberg - "Fremont General Gives Mortgage Staff Two-Month Dismissal Notice" (3-19-07)

"Fremont General Corp., the California thrift trying to sell its home-lending business, told the unit's staff they may be dismissed in two months. Employees will receive pay and benefits through May 18 unless they take other jobs, Kyle Walker, chief executive officer of the Fremont Investment & Loan subsidiary, told employees on a March 16 conference call. Fremont posted a recording of the call on a toll-free playback line. Walker cited the 'uncertainty of this situation' at Santa Monica, California-based Fremont."

CNN - "The dangers of investing in subprime debt" (3-19-07)

"Amid the chaos of the escalating subprime mortgage crisis, the three major credit-rating agencies - Fitch, Moody's and Standard & Poor's - have been voices of calm. They've downgraded only a sliver of the debt backed by such mortgages, and they say they expect the mess to stay safely confined to the subprime sector. But what if they're wrong? It's not just their reputations, already tarnished by their failure to give investors timely warning of the Enron or WorldCom implosions, that are at stake, but possibly the housing market itself. "

Bloomberg - "U.S. Homebuilder Confidence Index Falls This Month (Update2)" (3-19-07)

"U.S. homebuilders turned more pessimistic this month on concern that buyers will find it harder to obtain loans after a wave of defaults in the subprime mortgage market. The National Association of Home Builders/Wells Fargo index of sentiment fell to 36 this month from February's revised 39, the first decline since September, the Washington-based association said today. A reading below 50 means most respondents view conditions as poor. "

CNN - "Dodd: Top 5 subprime lenders may testify" (3-19-07)

"U.S. Senate Banking Committee Chairman Chris Dodd said on Monday he asked executives at five big subprime mortgage companies to testify at a Thursday hearing and explain their lending practices. Executives from HSBC Holdings Plc (Charts), New Century Mortgage Corporation (Charts), Countrywide Financial Corp. (Charts), General Electric Co.'s (Charts) WMC Mortgage unit and First Franklin Mortgage (Charts) were invited to testify, Dodd, a Connecticut Democrat, said in a statement."

Yahoo! - "Broader Investigation of Lenders by SEC" (3-19-07)

"It has been known that the SEC was examining accounting practices at New Century Financial Corp., the nation's second-largest maker of subprime mortgages -- higher-priced home loans for people with tarnished credit or low incomes. But comments by SEC Enforcement Director Linda Thomsen on Monday were the first public acknowledgment that the agency was involved in a broad examination of the subprime sector within the mortgage industry."