Market Watch - "New Century stops accepting loan applications" (3-8-07)

"New Century Financial Corp. said late Thursday that it has stopped accepting loan applications because some of the subprime-mortgage specialist's financial backers are refusing to provide access to financing."

Reuters - "FBI to warn borrowers, lenders on mortgage fraud" (3-8-07)

"The Federal Bureau of Investigation, seeking to stem a rising tide of crime in home financing, said on Thursday it will warn borrowers and lenders that mortgage fraud can result in stiff fines and prison time. The FBI said in its Web site that the warning, worked out with the industry's main lobbying group, will educate borrowers on the consequences of criminal activity and put potential perpetrators on notice. The form will likely be included in consumer loan packets together with other information on fair lending practices, said Stephen Kodak, an FBI press officer."

Business Week - "Who's Profiting from the Subprime Bust" (3-8-07)

"As the market in shaky mortgages collapsed, some hedge funds raked in profits by betting on a decline in the ABX subprime index"

Bloomberg - "Hovnanian Reports Loss on Canceled Home Contracts (Update1)" (3-8-07)

"Hovnanian Enterprises Inc., the sixth- largest U.S. homebuilder by revenue, reported a loss for the fiscal first quarter as sales slumped and Florida homebuyers canceled orders."

Bloomberg - "Fed Warned on Foreclosures as Mortgage Growth Cools (Update1)" (3-8-07)

"The Federal Reserve Board's Consumer Advisory Council, including consumer advocates and banks, met today in Washington, with Bernanke and Fed Governors Susan Bies, Randall Kroszner and Frederic Mishkin in attendance. Home-mortgage foreclosures were the first agenda item and the officials heard anecdotes of default and families at risk."

NAHB - "Rental Market Conditions Improve As Condo Market Recedes, Say Builders" (3-8-07)

"The rental apartment market shows signs of rebounding following the condo construction and conversion exuberance of recent years. The return of developers to the market-rate apartment sector – the low-rent government subsidized apartment sector never really faltered – is being fueled by increased household demand for rental units and depleted supply due to the earlier conversion of rental apartment buildings to condominium ownership."