MBA - "Mortgage Applications Decrease Slightly in Latest MBA Survey" (5-16-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 11, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 675.5, a decrease of 0.8 percent on a seasonally adjusted basis from 680.7 one week earlier. On an unadjusted basis, the Index decreased 0.6 percent compared with the previous week and was up 13.8 percent compared with the same week one year earlier. The Refinance Index increased slightly to 2115.5 from 2115.2 the previous week and the seasonally adjusted Purchase Index decreased 1.4 percent to 432.3 from 438.3 one week earlier. The seasonally adjusted Conventional Index decreased 0.5 percent to 997.6 from 1003.1 the previous week, and the seasonally adjusted Government Index decreased 3.2 percent to 138.6 from 143.2 the previous week."

Dr. Housing Bubble - "Why Did the Housing Phenomenon Spread?" (5-16-07)

"We can learn a lot from the social sciences especially in analyzing the current housing bubble. Many may see very little connection between housing and social science but behavioral economics and marketing have much to do and say regarding our current environment. This is particularly relevant in analyzing the current housing market because we are in a bubble; and by definition something in a bubble does not follow conventional rules. First, we must ask ourselves how can a relatively stable investment such as housing, become the topic de jour in all investing circles for the past 7 years. Next, we need to ask why housing became such an overnight phenomenon and spread like a blistering hot wildfire. Not only did housing spread into every imaginable aspect of the American psyche, it also contributed to 30% of all employment since the start of the millennium."

CVBT - "Central Valley cities lead the nation in foreclosures" (5-16-07)

"The Central Valley city of Stockton has the nation’s highest foreclosure rate -- one foreclosure filing for every 131 households, nearly six times the national average -- according to figures compiled by RealtyTrac Inc., an Irvine-based publisher of a national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new homes. Other California cities with foreclosure rates in the top 10 include Vallejo-Fairfield at No. 2, Riverside-San Bernardino at No. 4, Modesto at No. 6, Sacramento at No. 7, and Merced at No. 8."

Bloomberg - "Mortgage Defaults Rise 62 Percent" (5-16-07)

"Mortgages in foreclosure rose 62 percent in April and the number of Americans falling behind on home loans will climb this year as home prices fall and lending standards are tightened, RealtyTrac Inc. said. There were 147,708 notices of default, scheduled auctions and bank repossessions last month, led by California, Florida and Ohio, the Irvine, California-based seller of foreclosure data said today. The median U.S. home price fell 1.8 percent in the fourth quarter, according to a separate report by the National Association of Realtors."

Mish's Global Economic Trend Analysis - "Squeeze on Wage Earners Accelerates" (5-16-07)

"Real average weekly earnings fell by 0.5 percent from March to April after seasonal adjustment, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. A 0.3 percent decline in average weekly hours and a 0.5 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers were partially offset by a 0.2 percent rise in average hourly earnings."

Los Angeles Times - "Home sales hint at longer slump ahead" (5-16-07)

"Southern California home sales plunged to a 12-year low in April, suggesting that the region's real estate slump is far from over. Prices were up overall, rising 6.1% from a year earlier to a median of $505,000, according to data released Tuesday. But that increase was largely driven by an uptick in Los Angeles County, masking declines in Riverside, San Diego and Ventura counties."

Bloomberg - "Most U.S. Stocks Fall on Home Depot Earnings" (5-16-07)

"Most U.S. stocks fell a second day after Home Depot Inc.'s profit dropped more than forecast, housing prices tumbled and foreclosures rose, heightening concern the real-estate slump may worsen. Home Depot, the world's biggest home-improvement retailer, and Apple Inc., the maker of the iPod music player, led the Standard & Poor's 500 Index to its third decline in four days. Shares of Amgen Inc., the world's biggest biotechnology company, dragged the Nasdaq Composite Index to a two-week low, while the Dow Jones Industrial Index climbed to its 22nd record this year, buoyed by General Motors Corp."

The Wall Street Journal - "Lenders Get Tougher" (5-16-07)

"As the number of delinquent mortgages climbs, lenders have tightened their standards for issuing loans, including such well-publicized moves as raising minimum credit scores and cutting back on 100% financing and low-documentation loans. Now, some lenders are probing more intently would-be borrowers' finances. They are taking a tougher look at how much the property a borrower wants to buy is worth. They are peering further into clients' pasts for credit problems and requiring more in-depth reviews of borrowers who say they are self-employed. Some lenders are taking a harder stance when it comes to whose credit score a couple can use when applying for a mortgage, rather than simply allowing them to use the higher of the two scores."

eFinanceDirectory.com - "60 Percent of Liar Loan Applicants Exaggerate Income" (5-16-07)

"The use of stated income loans, or liar loans as they are known throughout the industry, has increased exponentially over the last few years. Analysts at Credit Suisse Group say that liar loans account for 46 percent of the subprime mortgage loans being granted to borrowers. Liar loans do not require borrowers to prove their income to qualify for a mortgage loan; borrowers merely state what they do and how much they earn doing it on the application."

Reuters - "Mortgage brokers cashed in on U.S. housing bounty" (5-16-07)

"Money may not grow on trees but for a while it seemed to grow on houses, and Colleen Moorhead knew exactly where to turn when she needed to harvest some cash. With a few phone calls, broker Joyce DeAngelo could put Moorhead and her husband into a new mortgage and cut them a check. They used more than $100,000 in cash they netted from the refinancing for living expenses and renovations."

Orange County Register - "No government aid for foreclosures, poll says" (5-16-07)

"There's much talk about various ways the government could get financial help to certain homeowners, primarily lower-income households, who can't meet their mortgage payments. We asked visitors to the Lansner on Real Estate blog if any homeowners facing foreclosure should get government aid. And the results from 870 votes cast online in what's an unscientific sample of public sentiment were stark"

Los Angeles Times - "Panel urges rent control expansion" (5-16-07)

"In an action intended to close a loophole and protect middle-income tenants, a Los Angeles City Council committee moved Tuesday to expand rent control to apartments that are built to replace torn-down units. If approved by the full council and the mayor, the measure would add another aspect to the city's rent control law, which now applies only to buildings constructed prior to 1979."