Orange County Register - "Who's at risk from subprime implosion?" (5-6-07)

"They're often described as tickets to homeownership for people with damaged credit. But subprime mortgages also are reshaping entire neighborhoods. In subdivisions from Rialto to Sacramento, half or more of all home-purchase mortgages in 2005 were subprime."

North County Times - "Mortgage brokers get fatter payoff for selling riskier loans" (5-6-07)

"When mortgage brokers sign up borrowers, they have a big financial incentive to promote risky loans, according to a variety of industry experts. Over the last three years, risky loans have fueled the rise in mortgage defaults, foreclosures and bank auctions of distressed properties throughout the state, a loan industry watchdog said last week."

Yahoo - "Investors Await Fed's Decision on Rates" (5-6-07)

"After another record-setting week on Wall Street, investors are wondering whether stocks are due for a fall or are headed even higher. This week's words from the Federal Reserve and retail sales could provide some clues. Recently, it has seemed as if nothing can derail the stock market's climb. Economic reports last week were mixed, but institutional investors remained enthusiastic thanks to soaring takeover activity. News Corp.'s bid for Dow Jones & Co. reinvigorated the stock market Tuesday after a morning of mixed economic news, and on Friday, reports that Microsoft Corp. might be mulling a buy of Yahoo Inc. nudged stocks higher despite lackluster jobs data."

Orange County Register - "O.C. home to biggest subprime lenders" (5-6-07)

"Five of the 10 largest subprime home lenders in America in 2005 were based in Orange County. The top 10 lenders made nearly half of all subprime home purchase loans that year. Here are the top 10 lenders, the amount loaned in billions of dollars and their share of the subprime market."

Los Angeles Times - "Better-heeled failing home economics too" (5-6-07)

"Sheriff's Deputy Mike Strickland is a postman of bad news, delivering eviction notices in the western stretch of San Bernardino County. He is armed with a Glock .45, which he seldom draws, and Scotch tape, which he goes through in prodigious amounts while posting court orders on doors and windows."

Los Angeles Times - "Delinquent borrowers may get a tax surprise along with forgiven debt" (5-6-07)

"For homeowners seriously delinquent on their mortgages and hoping for some relief, the IRS has bad news: If your lender agrees to modify your loan and forgive any part of your debt, you could owe federal income taxes on the amount forgiven. When personal debts are canceled by a creditor, the amount forgiven is treated as ordinary income under the Internal Revenue Code unless the taxpayer is insolvent or bankrupt. And the lender is required by law to report the amount canceled to the IRS."

Los Angeles Times - "Quick action can head off a foreclosure nightmare" (5-6-07)

"Tina and Richard Buchbinder know how it feels to lose a home to foreclosure. More than 11 years after walking away from their two-bedroom home, Richard, 43, a manager for a truck repair shop, and Tina, 37, a telephone answering service operator, recall the feelings of shame and loss. 'It was hard,' Richard said. 'I felt an obligation. I made a promise to pay that house note. It was emotional too. We had two kids in that house. But when we stopped and looked at what would be the right thing for our family, letting the bank foreclose on our home was the best option for us at the time.'"