CNN - "The risk in subprime" (3-1-07)

"During the boom, lenders gave homeowners loans they couldn't afford. Now they're feeling the consequences."


Bloomberg - "Construction Spending in U.S. Decreased 0.8% in January" (3-1-07)

"Construction spending in the U.S. fell by the most in three months in January, pulled lower by the biggest decline in homebuilding since July. Spending on residential and non-residential projects dropped 0.8 percent after a revised 0.6 percent increase in December, the Commerce Department said today in Washington. The government previously estimated a drop in December spending. "


Bloomberg - "Countrywide Says Late Payments on Subprime Loans Rose (Update4)" (3-1-07)

"Countrywide Financial Corp., the biggest U.S. mortgage lender, said payments were late on almost 20 percent of the subprime loans it manages for clients. Delinquencies of 30 days or more on `nonprime' loans, or those to borrowers whose credit ratings fell short of the highest criteria, widened to 19 percent as of Dec. 31 from 15 percent a year earlier, Countrywide said in a regulatory filing. The data reflect loans not owned by Countrywide where the company performs billing and record-keeping. "


Bloomberg - "Greenspan Says U.S. Recession Possible, Not Probable (Update5)" (3-1-07)

"Former Federal Reserve Chairman Alan Greenspan said a recession in the U.S. is possible, though not probable this year as excess inventory is being reduced quickly, according to people attending a CLSA Japan Forum in Tokyo today."

CAR - "C.A.R. reports entry-level housing affordability at 25 percent in California" (3-1-07)

"The percentage of households who could afford to buy an entry-level home in California stood at 25 percent in the fourth quarter of 2006, compared with 27 percent for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)."

CBIA - "Total Housing Production Drops 9 Percent in January" (3-1-07)

"While total housing production in California continued to fall in January, single-family housing starts recorded their first month-over-month increase since last June, the California Building Industry Association announced today."

Business Week - "Lender Woes Go Beyond Subprime" (3-1-07)

"While the stocks of some subprime players have been battered, even diversified lenders and big banks have their concerns"

"Few are feeling the hangover from housing's heyday as much as subprime lenders that cater to risky borrowers. The stocks of such players as New Century Financial Corp. (NEW) and NovaStar (NFI) have been slashed, 50% and 63% respectively, since February (see BusinessWeek.com, 2/21/07, "Fears Reignite for Subprime Lenders"). But even diversified lenders and mainstream banks have headaches. Countrywide Financial (CFC) is off 13%, Washington Mutual (WM) has slipped 6%, and Europe's HSBC (HBC) is down 5% since it revealed that its 2006 charges for bad debts would exceed forecasts by $1.76 billion."

ABC - "Mortgage Meltdown Angers Ex-Workers" (3-1-07)

"Former employees of Folsom-based Central Pacific Mortgage are angry over the lack of warning before this week's sudden layoffs."

Chron.com - "GMAC's Subprime Mortgages a Threat to GM" (3-1-07)

"The world's largest auto maker disclosed Thursday that it will need more time to file its 2006 annual report with the Securities and Exchange Commission, marking the second year in a row the company has postponed the key filing. Many analysts attribute this year's delay to a substantial hit the Detroit-based automaker might take from the exposure its part-owned finance unit _ GMAC Financial Services _ has to the business of making mortgage loans to people with weak credit or heavy debt burdens."

CNN - "Mr. Real Estate: 'All systems go, pockets of pain'" (3-1-07)

"David Lereah, chief economist for the National Association of Realtors, is ready to call a bottom. But some markets still face corrections."

"If you look at local areas, that statement is true. California has a long way to go. I expect them to continue to experience pain all throughout this year. Southern Florida, same thing. Las Vegas is probably going to take a little longer to correct as well. A quarter of the country is still feeling pain, and I can't guarantee that it's going to be over by the end of 2007 for some of those areas."