DQ News - "California Foreclosure Activity Jumps Again" (4-16-07)

"The number of default notices sent to California homeowners last quarter increased to its highest level in almost ten years, the result of flat appreciation, slow sales, and post teaser-rate mortgage resets, a real estate information service reported. Lending institutions filed 46,760 Notices of Default (NoDs) during the January-to-March period. That was up by 23.1 percent from a revised 37,994 for the previous quarter, and up 148.0 percent from 18,856 for first-quarter 2006, according to DataQuick Information Systems. "

Yahoo! - "Group Trying to Keep Borrowers in Homes" (4-16-07)

"Financial institutions making changes to the terms of home loans -- such as extending the initial low, or "teaser" interest rates on adjustable-rate mortgages -- may help ease the distress of borrowers who are making regular payments but facing possible default, said Sheila Bair, chairman of the Federal Deposit Insurance Corp. Bair organized the unusual seven-hour meeting at FDIC headquarters on the turmoil in the market for so-called subprime mortgages, which are higher-priced home loans for people with tarnished credit or low incomes who are considered greater risks. In recent weeks, the distress has roiled financial markets and stoked anxiety that it could spill over into the broader economy."

Yahoo! - "Foreclosure forecast: Blizzard brewing" (4-16-07)

"Economic forecasters worry the combination of a real estate market in the doldrums and unfortunate timing may be blowing in a blizzard of new foreclosure filings. The first flurries are already arriving."

Yahoo! - "Riding Out the Subprime Disaster" (4-16-07)

"You've no doubt heard about the subprime mess in the mortgage industry. That's the bad news. But there's a flip side: Even though there's trouble in the subprime market, bankers haven't stopped lending money on good real estate to sound investors."

Fresno Bee - "Officials hope for housing funds" (4-16-07)

"A new proposal seeks to give families like the Espinosas some hope. The plan, contained in state legislation, is to create a Valleywide housing trust that would dedicate a permanent source of revenue for affordable housing programs. That could include things like incentives for developers to build more homes for low-income residents, or money for first-time buyer programs. Funded with real estate taxes, developer fees or other methods, housing trusts are an increasingly popular option for communities, which are getting less outside help as federal housing assistance becomes more scarce each passing year, advocates say."

Contractor Mag - "Builder tells subs to cut prices mid-contract" "So they gave us a choice of either reducing all unpaid invoices under current contracts by a percentage that varies from contractor to contractor, but it's a range of 3% to 20%," the contractor said. "This is for work that we had already been lowest bidder on and it was ongoing like the fourth or fifth phases of the project. Lennar already demanded a 5% decrease from the previous phase, so this is the second time they've come to the well. They're not a huge book in my business but I know roofers or concrete people that it's 50% or more of their work."

Sign On San Diego - "San Diego sees record number of foreclosures in March" (4-16-07)

"A record 433 owners lost their homes in San Diego County to foreclosure last month, more than six times the March 2006 figure, DataQuick Information Systems reported Monday. The previous record was 337 in March 1996 at the tail end of the 1990s real estate recession, after which foreclosures dropped to as low as just four in December 2004."

LA Times - "Get rid of reconveyance" (4-16-07)

"A DEVELOPER BUILDING a housing tract wants to do its part in preserving adjacent wetlands, helping the community's homeless or providing perpetual funding for nearby park maintenance. The company hits on an ingenious solution: a perpetual fee (called "reconveyance"), grafted right into the deed as a percentage of the sale price, that each buyer of the property must pay. Forever. This new contractual scheme has begun to spring up all over California."

NAHB - "Builder Confidence Recedes Further In April" (4-16-07)

"Deepening problems in the subprime mortgage market continued to take a toll on builder confidence in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The index declined three points to 33 in April, its lowest level since December of 2006."

Bloomberg - "Citigroup Net Income Declines 11 Percent on Charge (Update5)" (4-16-07)

"Citigroup Inc., the biggest U.S. bank, said first-quarter earnings dropped 11 percent because of expenses to slash 17,000 jobs and reported the fastest growth in revenue in almost three years. Net income fell for the third straight quarter, declining to $5.01 billion, or $1.01 a share, from $5.64 billion, or $1.12, a year earlier, New York-based Citigroup said today in a statement. Profit excluding the $871 million charge rose 4.3 percent to $5.88 billion, or $1.18 a share, beating estimates by 9 cents. "

Bloomberg - "Greenspan Says Global Growth to Cushion U.S. Economy (Update5)" (4-16-07)

"Former Federal Reserve chairman Alan Greenspan played down his earlier concern about a possible U.S. recession, saying the world economy would provide a cushion, according to people attending a forum in Tokyo today. Greenspan said growth in the rest of the world is creating demand for services from companies such as Microsoft Corp., according to Vaseehar Hassan Abdul Razack, chairman of Kuala Lumpur-based RHB Islamic Bank Bhd, who attended the meeting, hosted by Nomura Research Institute Ltd. Greenspan was speaking via satellite from Washington. "

Bloomberg - "Subprime Mess Produces Unqualified Victims: Michael Lewis" (4-16-07)

"The story line of the newest American financial debacle is now clear: President Bill Clinton eased lending standards to encourage the rich people who run the mortgage market to embrace poor people with low credit ratings. Then these horrible rich people -- these unfeeling sharks -- went to work exploiting the poor. "

OC Register - "Calif. defaults at near 10-year high" (4-16-07)

"The number of default notices sent to California homeowners last quarter increased to its highest level in almost ten years, the result of flat appreciation, slow sales, and post teaser-rate mortgage resets, a real estate information service reported. Lending institutions filed 46,760 Notices of Default (NoDs) during the January-to-March period. That was up by 23.1 percent from a revised 37,994 for the previous quarter, and up 148.0 percent from 18,856 for first-quarter 2006, according to DataQuick Information Systems."

Bloomberg - "U.S. Homebuilder Confidence Index Falls to 33 in April From 36" (4-16-07)

"An index of U.S. homebuilders' confidence fell to the lowest level of the year this month amid concern that an increase in mortgage defaults is resulting in tighter lending standards that are discouraging would-be buyers. The National Association of Home Builders/Wells Fargo index of sentiment fell to 33 from 36 in March, the Washington-based association said today. A reading below 50 means most respondents view conditions as poor. "

Bloomberg - "Fremont Agrees to Sell $2.9 Billion of Subprime Loans (Update3)" (4-16-07)

"Fremont General Corp., barred by U.S. regulators from offering mortgages to borrowers with poor credit, agreed to sell $2.9 billion of subprime home loans in a transaction that may help the company recover from a tailspin that wiped out half its market value this year. The sale, involving the majority of Fremont's remaining subprime loans, will result in a $100 million pretax loss because the mortgages are being sold at a discount, the Santa Monica, California-based company said in a statement on PRNewswire today. The unidentified buyer also signed a letter of intent to acquire most of Fremont's residential real estate business and assets. "

CAR - "C.A.R. launches $2.3 million ad campaign highlighting value REALTORS® bring to the transaction" (4-16-07)

"The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched a brand new Consumer Advertising Campaign highlighting the value REALTORS® bring to the transaction. Through a bold, new approach and theme -- “California REALTORS® - We get it.” -- the campaign also will raise awareness of the REALTOR® brand and reinforce the professionalism of REALTORS® who belong to C.A.R."

House Committee on Financial Services - "Subcommittee on Housing and Community Opportunity Hearing" (4-16-07)

The Expanding American Homeownership Act of 2007: H.R. 1852 and Related FHA Modernization Issues - Thursday, April 19, 2007, 10:00 a.m., 2128 Rayburn House Office Building

Follow Link to listen live over web.

Inman - "House Finance Committee holding hearings on mortgage lending Restrictions on lenders, FHA modernization to be debated

Monday, April 16, 2007

Inman News - "House Finance Committee holding hearings on mortgage lending" (4-16-07)

"This week will be a busy one for lawmakers on Capitol Hill, who plan two hearings that could shape the federal government's response to rising delinquencies and foreclosures among subprime mortgage borrowers. At a hearing Tuesday, the House Committee on Financial Services will consider recommendations in a recent report by the Congressional Joint Economic Committee, including increased support for local foreclosure programs and strengthening Federal Housing Authority mortgage insurance programs. The report also recommended instituting a federal anti-predatory-lending law, tougher loan disclosure requirements and suitability standards requiring borrowers to demonstrate their ability to repay mortgage loans. Lending industry groups including the Mortgage Bankers Association say they support stronger foreclosure prevention and FHA insurance programs, but oppose some of the proposed restrictions on lenders such as suitability standards."

Inman - "A bill sponsored by Democrats Barney Frank and Maxine Waters, HR 1852, would increase FHA loan limits in high-cost areas such as California, New York and Massachusetts; authorize no- or low-down-payment FHA-backed loans to compete with private sector loans; permit FHA to underwrite loans to borrowers with higher credit risk than currently allowed; and eliminate a volume cap on FHA reverse mortgage loans."