OC Register - "How to make housing woes worse" (3-18-07)

"Pop. That was the sound of the housing bubble bursting, as the subprime mortgage market began to collapse. Irvine-based lender New Century announced March 13 that it is under investigation by the federal government. Wall Street earlier cut off funding to the company, and now the nation's second-largest subprime lender can't make any new loans, according to Register reports. On March 15, the parent of another subprime lender, Ameriquest Mortgage Co., cut 3,000 jobs nationwide."

Sign On San Diego - "FHA picks up the slack in subprime mortgages" (3-18-07)

"With the subprime mortgage industry in virtual free fall, where do home buyers with less than perfect credit turn for financing? The news reports are grim: Not only have dozens of subprime lenders closed their doors or cut back sharply on new mortgage offerings, but they're also severely tightening the loose underwriting standards that got them into trouble. As a result, many people who would have been approved for a loan months ago now find all the doors suddenly closed."

"But here's some potentially helpful news: There is a mortgage source that is actually expanding its business nationwide for credit-impaired and first-time home purchasers. That source is the golden oldie of the mortgage arena – the Federal Housing Administration (FHA), which recently has seen a doubling of customers refinancing out of private, subprime loans into its insured mortgage programs. "

Market Watch - "Housing under intense scrutiny" (3-18-07)

"Nervous markets will be watching the monthly housing numbers with even more intensity after the troubles in the subprime mortgage market of the past month. The monthly housing data will dribble out over the next two weeks, beginning with the home builders' index this Monday and concluding with new-home sales next week. "

LA Times - "L.A. housing market holds its ground" (3-18-07)

"Whom do you believe? Last week came the gloomy news that the number of U.S. homes entering foreclosure is rising, and with it, more experts are predicting a meltdown of the sub-prime lending market. But that stares in the face of median home prices in Southern California still climbing the first two months of 2007, compared with 2006. In L.A. County, the median rose 8.2% in the two-month period, to $525,000. Yes, fewer houses were sold, but the number remains well above the mid-'90s slump."

LA Times - "Seller financing can jump-start a home sale" (3-18-07)

"Need to close that deal? Consider offering terms yourself -- for a limited period, and only with a sizable down payment."

San Francisco Chronicle - "FHA steps in to emerging subprime lending void" (3-18-07)

"But here's some potentially helpful news: There is a mortgage source that is actually expanding its business nationwide for credit-impaired and first-time home purchasers. That source is the golden oldie of the mortgage arena -- the Federal Housing Administration, which recently has seen a doubling of customers refinancing out of private, subprime loans into its insured mortgage programs. There's good reason: The FHA doesn't have problems with Wall Street investors who now see subprime mortgage bonds as toxic. FHA's bonds, by contrast, are gilt-edged and backed by the federal government, so there's no shortage of mortgage money. Equally important: FHA-insured loans are more consumer-friendly than subprime offerings and come with interest costs roughly three percentage points below directly comparable subprime mortgages. "