Washington Post - "Fannie, Freddie Wary of Controls" (3-16-07)

"Executives of Fannie Mae and Freddie Mac invoked the upheaval in the mortgage market yesterday as a reason for lawmakers to be cautious about subjecting them to stricter regulation. The recent meltdown in unconventional home loans provided political ammunition for Fannie Mae and Freddie Mac just as House members are poised to move ahead on long-delayed legislation aimed at tightening controls on the federally chartered mortgage-funding companies."

Yahoo! - "NovaStar Financial, Inc. Announces Reduction in Workforce" (3-16-07)

"NovaStar Financial, Inc. (NYSE:NFI - News), a residential mortgage lender and portfolio investor, today announced a reduction in workforce to align its organization with changing conditions in the mortgage market. The workforce reductions affect about 350 persons, approximately 17 percent of the Company's workforce. The actions focus on the Company's wholesale loan origination group and related functions, including employees at the Company's headquarters in Kansas City and at operation centers in California and Ohio. Subject to completion of the necessary legal notices and requirements, implementation of the reductions will begin immediately and conclude during the second quarter of 2007. NovaStar's loan servicing organization is not affected by the reduction."

Real Estate Jounral - "Congress Primed to Act On Risky Home Loans" (3-16-07)

"Yesterday, Mr. Dodd said federal banking regulators had been too slow to address these concerns. 'I'm determined to do everything we can to allow people to stay in their homes,' he said, but he stressed that details of any legislation remain to be worked out. At issue are so-called subprime mortgages, home loans made to consumers with weak or sketchy credit histories. Subprime mortgages have helped millions of Americans become homeowners, but critics contend that aggressive lenders have pressed some borrowers into mortgages they can't afford. The mortgages carry high fees and often have escalating interest rates. A recent surge in defaults in the sector has roiled financial markets."

Bloomberg - "Toll Calls Spring `A Bust,' Can't Predict Recovery (Update4)" (3-16-07)

"Toll Brothers Inc. Chief Executive Officer Robert Toll said the spring selling season has been 'pretty much a bust' and he can't predict when the housing recovery will begin."

Business Week - "Inside The Mortgage Crisis" (3-17-07)

"How exposed is Countrywide to the subprime mess? In 2006 subprime loans were about 9% of our total business, now down to 7%. We're a prime lender...but we also have been on a mission...to try to increase home ownership opportunities for minorities and low-income borrowers. So it's distressful to me personally to see the piling on that's taking place by the media and regulators. This was a system that was working very well, providing an opportunity for people to get over that barrier of entry to owning a home. Now what you've had is panic setting in, and [the subprime story] is leading every newspaper. It's like there's no war going on in Iraq."

North County Times - "Lenders: Visions of profit fueled risky loans" (3-16-07)

"For years now, many people caught up in California's biggest housing boom have wondered what possessed lenders to make so many risky mortgages ---- such as loans to homeowners with bad credit histories and "liar loans" that require no income verification. At a conference held this week at the La Costa Resort, some mortgage industry leaders revealed what had been on their minds during the frenzy: They knew there was risk, but did it anyway because there was so much money to be made."

Sun Sentinel - "Falling home prices causing crisis with risky mortgages, Greenspan says" (3-16-07)

"Retired Federal Reserve Chairman Alan Greenspan, speaking at a Futures Industry Association annual conference here on Thursday, said the problems of the subprime mortgage market had more to do with home prices than easy credit."

Review Journal - "MORTGAGE LENDING: Subprime woes hit Las Vegas" (3-16-07)

"Listen closely and you'll hear the croaking sound of nearly 40 subprime mortgage lenders nationwide, including Las Vegas-based Silver State Mortgage, that have either shut down operations, filed for bankruptcy or have been acquired through last-ditch mergers since late last year."

USA Today - "Subprime mortgage troubles could still spread pain but probably not recession" (3-16-07)

"The subprime mortgage meltdown, while dramatic, isn't likely to push the U.S. economy into recession. Still, bankruptcies at dozens of lenders and rising default rates among borrowers could reduce growth, hurt home prices, crimp consumer spending and affect the financial fortunes of millions, from first-time home buyers to timber workers, truckers and lenders."

Sign On San Diego - "Ailing Accredited to sell $2.7 billion of its home loans" (3-17-07)

"Beleaguered San Diego mortgage firm Accredited Home Lenders gave itself some breathing room yesterday when it said it had agreed to sell $2.7 billion in mortgages to undisclosed buyers."

Bloomerberg - "Greenspan's Subprime Comment Fizzles as Lenders Climb (Update2)" (3-16-07)

"Alan Greenspan, whose comments on recession helped send stock prices reeling two weeks ago, predicted the subprime-mortgage debacle in the U.S. will worsen."

Business Week - "Inflation, Factory Data Squeeze Fed" (3-16-07)

"Despite the Street's concern about a faltering economy, the Fed likely will leave interest rates alone after jumps in the latest reports"

Fresno Bee - "Real estate outlook improves" (3-16-07)

"Low interest rates, a growing population, relatively low prices and an abundance of land will help make the central San Joaquin Valley a desirable real estate market in 2007, a panel of forecasters said Thursday."

Real Estate Journal - "Subprime Mortgage Woes Spread; Forecasts for Home Prices Cut" (3-16-07)

"Most economic forecasters in a new WSJ.com survey believe recent turmoil in the subprime mortgage market is likely to spread to the broader mortgage market and they expect a widely followed index of home prices to fall this year. But they still think the U.S. will avoid a recession and even a significant rise in unemployment."

DQ News - "California February 2007 Home Sales" (3-16-07)

"A total of 31,228 new and resale houses and condos were sold statewide last month. That's down 3.7 percent from 32,425 in January, and down 21.3 percent from 39,676 in February 2006. A sales decline between January and February is not unusual. The year-over-year sales decline peaked last September at 34.5 percent."

Los Angeles - "Outside the sub-prime loan box" (3-16-07)

"Don't let the name fool you. Although it calls itself an 'association,' HNMA is a privately held, profit-making enterprise. And though it's focused primarily on the Latino community, the company's aim is to provide home loans — at rates much closer to prime than sub-prime — to a range of immigrants and others historically locked out of the market."