Yahoo! - "Mapping the Subprime Mess" (3-29-07)

"In parts of California, the rate of increase in default activity is now growing rapidly, appearing ready to eclipse the 1996 highs that preceded the technology boom. According to this report in the San Diego Union Tribune, default notices are up four times from year ago levels and foreclosures have tripled."

Business Week - "Beazer Fallout Hits Homebuilders" (3-29-07)

"Homebuilders came under fire in the market again on Mar. 28 after news that the North Carolina field offices of the Federal Bureau of Investigation, the Internal Revenue Service, Inspector General of Housing & Urban Development, and the Justice Dept. have opened a criminal probe into lending practices, some financial transactions, and other dealings at Beazer Homes USA (BZH) (see BusinessWeek.com, 3/27/07, "Feds Are Investigating Homebuilder Beazer"). The headline reignited investor fears during recent weeks about industries that are feeling the pain from the housing slowdown."

NY Post - "Freddie Fights Back" (3-30-07)

"Broke and bruised mortgage packager New Century Financial Corp. got booted from the banking system yesterday as a new legal quagmire swelled around its exit. The federally backed underwriter Freddie Mac severed ties with the company and won't accept any of the mortgages it's signed with homebuyers. "

MSNBC - "Credit Suisse sues subprime lenders" (3-29-07)

"Credit Suissehas filed lawsuits against at least three US subprime mortgage lenders, marking an escalation of efforts by Wall Street banks to use legal action to purge themselves of bad housing loans. DLJ Mortgage Capital, a unit of Credit Suisse, is separately suing the three mortgage companies for more than $30m, claiming the lenders failed to honour obligations relating to loans that it purchased from them. EMC Mortgage Corp, a unit of Bear Stearns, has filed at least one $70m lawsuit against a lender. Other suits are expected."

Yahoo! - "Forecast for Foreclosures" (3-29-07)

"Michele Johnson is no stranger to desperate phone calls, but lately they've become an even more regular occurrence. Johnson, who is chief executive of the Consumer Credit Counseling Service of Southern Nevada & Utah, says that these days, homeowners facing foreclosure are seeking out the agency's help in droves."

Bloomberg - "California Investigates Subprime Mortgage Industry (Update2)" (3-29-07)

"California Attorney General Jerry Brown is investigating the collapsing subprime mortgage industry in the state, the largest U.S. market for high-risk home loans. Gareth Lacy, Brown's spokesman, said yesterday that the attorney general has an 'active and open investigation' that's a continuation of probes into predatory lending practices that began a couple of years ago. Lacy wouldn't say which companies may be targeted or how far the probe has progressed."

Sign On San Diego - "Home loan defaults skyrocket in county" (3-29-07)

"Homeowners throughout San Diego County are defaulting on their loans and losing their properties to foreclosure at an increasingly rapid pace, a shattering event that nevertheless remains far less extensive here than the mortgage problems arising elsewhere in the nation."

"San Diego County placed 17th among the state's 58 counties, with a default rate of 3.3 per 1,000 homes, compared with 6.9 in top-ranked San Joaquin County."

Bloomberg - "California Investigates Subprime Mortgage Industry (Update2)" (3-29-07)

"Half of the 20 biggest U.S. subprime lenders, including No. 2 New Century Financial Corp., which is trying to avoid bankruptcy, are located in California, according to the newsletter Inside Mortgage Finance. The industry is under scrutiny by regulators after delinquencies on subprime mortgages rose to 13.3 percent last quarter, the highest since September 2002. About 13 percent of the U.S.'s subprime loans are in California, according to the Washington-based Mortgage Bankers Association. Mortgage industry analyst Bob Visini of First American Loan Performance said that 13 percent accounts for 22 percent of the subprime mortgage debt in the U.S. because California is the nation's most expensive real estate market."

Market Watch - "A mortgage crisis of their own" (3-29-07)

"The subprime credit crisis has been in swing for a few weeks now. As part of the cycle, we've all heard the stories about people drowning in debt. Maybe you know the fellow with the adjustable-rate mortgage who's slapped toward bankruptcy with every reset."

Boston.com - "Mortgage crisis hits million-dollar homes" (3-29-07)

"Sheriff Leo McGuire presides over foreclosure auctions in Bergen County, New Jersey, where the bidding for a home reached $1.2 million last June -- a record for one of the wealthiest counties in the nation."

NAR - "Realtors® Commend House Panel's Approval of GSE Reform" (3-29-07)

"NAR President Pat Vredevoogd Combs praised the efforts of House Financial Services Chairman Barney Frank (D-Mass.), Rep. Spencer Bachus (R-Ala.) and members of the committee for passing the reform bill, long-supported by NAR, that would overhaul the regulatory structure for the nation’s housing finance GSEs that include Fannie Mae, Freddie Mac and the Federal Home Loan Banks. H.R. 1427, the Federal Housing Finance Reform Act of 2007, focuses on safety and soundness regulation of GSEs while preserving Fannie Mae’s and Freddie Mac’s ability to accomplish their key housing mission, a long-standing concern of NAR. "

Bloomberg - "Wal-Mart May Suffer as Mortgage Woes Hit Customers (Update2)" (3-29-07)

"Ynigues is one of about 800,000 U.S. homeowners who took out so-called subprime mortgages and now are struggling to make monthly payments. As these consumers spend less on products including home furnishings and clothing, sales of retailers such as Home Depot Inc. and Wal-Mart Stores Inc. may suffer."