Market Watch - "What goes boom must go bust" (3-21-07)

"Mortgage marketing campaigns have been changed from "Money? Free!" to "Last four years of W2's - notarized!", font sizes have been reduced in print ads, get-rich-on-real-estate infomercials have been moved from prime time to 2am, your brother in law has finally clammed up. Indications, all, that something has changed - really changed - in the housing market."

CNN - "Despite low rates, mortgage demand falls" (3-21-07)

"Application activity drops for the first time in four weeks, Mortgage Bankers Association's seasonally adjusted index says."

CNN - "Fed holds rates steady again" (3-21-07)

"Bernanke & Co. keep key rate at 5.25%, say economy expanding despite housing woes; market jumps on rate cut hopes."

Bloomberg - "Homeowners, Lenders Skirt Default, May Curb U.S. Housing Slump" (3-21-07)

"Almost 5 percent of U.S. mortgages had payments overdue by 30 days or more at the end of last year, the highest since 2003, Duncan said. No one tracks or estimates the number of borrowers who avoid foreclosure with a short sale, according to Duncan and David Berson, chief economist of Washington-based Fannie Mae, the largest buyer of mortgages. There's ample evidence that the number is increasing, they said."

Bloomberg - "Fremont Sale Clears Out $4 Billion of Subprime Loans (Update4)" (3-21-07)

"Fremont General Corp., one of two companies ordered to stop offering subprime mortgages, will sell $4 billion of loans to stem losses from homeowner defaults. The sale will result in a pretax loss of $140 million, Santa Monica, California-based Fremont said in a statement. The buyer wasn't identified. The loss shows the loans will be sold for 96 cents on the dollar, more than most analysts expected, said Theodore Kovaleff at Sky Capital LLC in New York. "

Reuters - "Adjustable loans endanger homes for many in U.S" (3-21-07)

"An estimated 1.1 million U.S. mortgage holders are at risk of losing their homes as rates reset on adjustable-rate mortgages originated between 2004 and last year, according to First American CoreLogic, a Santa Ana, California, firm that tracks property financing trends."

Forbes - "Fremont General Finds Subprime Buyer" (3-21-07)

"Shares of Fremont General jumped $1.18, or 13.4%, to $9.95 in Wednesday afternoon trading after announcing the sale of $4 billion of its loans, boosting chances the company can successfully extricate itself from the crumbling subprime mortgage business."

Bloomberg - "`Short Sellers' Who Predicted Subprime Rout See More Declines" (3-21-07)

"The collapse in shares of subprime- mortgage companies over the past month rewarded so-called short sellers who bet that rising defaults among the riskiest borrowers would curb lenders' profits. Some traders who predicted declines in shares of New Century Financial Corp., NovaStar Financial Inc. and Accredited Home Lenders Holding Co. say such stocks may fall further as loan delinquencies increase and demand for mortgage-backed securities wanes. New Century sank 90 percent last month, while NovaStar lost 73 percent. Accredited slid 54 percent. "

Yahoo! - "'Liar Loans': Mortgage Woes Beyond Subprime" (3-21-07)

"Some experts in the field are now concerned about the so-called Alt. A mortgage loan market, which has grown even faster than the market for subprime mortgage loans to borrowers with less than top credit. Alt. A refers to people with better credit scores (A-rated) who borrow with little or no verification of income, or so-called alternative documentation."

Bloomberg - "Treasuries Gain as Fed Softens Reference to Interest-Rate Boost" (3-21-07)

"U.S. Treasury notes maturing in two years rose the most in more than a week after the Federal Reserve left borrowing costs unchanged and unexpectedly softened a reference on the need for higher interest rates."

Business Week - "Why the Fed Didn't Raise Interest Rates" (3-21-07)

"Inflation is running above the levels that Bernanke has targeted, but he's holding off on hiking rates because of the risks"

Bloomberg - "Subprime Meltdown Snares Borrowers With Better Credit (Update3)" (3-21-07)

"The subprime credit crunch is beginning to ensnare even borrowers with better credit. Lenders are increasingly refusing to lend to homebuyers who can't make a down payment of more than 5 percent, especially if they won't document their income. Until recently such borrowers qualified for so-called Alt A mortgages, which rank between prime and subprime in terms of risk. Last year the category accounted for about 20 percent of the $3 trillion of U.S. mortgages, about the same as subprime loans, according to Credit Suisse Group. "

Bloomberg - "Government Is `Here to Help' Subprime Borrowers: Caroline Baum" (3-21-07)

"Congress is making noises about doing something to help homeowners who can't meet their mortgage payments hold on to their slice of the American Dream. Democratic presidential frontrunner Hillary Clinton, senator from New York, wants even lower mortgage rates for homeowners facing foreclosure. Senate Banking Committee Chairman Chris Dodd, Democrat of Connecticut, and House Financial Services Chairman Barney Frank, Democrat of Massachusetts, are holding hearings to determine Congress's legislative options. "