Washington Post - "Pressure at Mortgage Firm Led To Mass Approval of Bad Loans" (5-7-07)

"New Century has become the premier example of a group of companies that grew rapidly during the housing boom, selling working-class Americans with questionable credit huge numbers of 'subprime' loans with 'teaser' rates that typically rose after the first two years. This business transformed the once-tiny New Century into a lending powerhouse that was held up as a of the mortgage industry's success."

Orange County Register - "State of Subprime" (5-7-07)

"Subprime loans helped consumers with blemished credit buy homes. But their homes are threatened by the collapse of the subprime industry. The damage is likely to hit some California counties and neighborhoods far more than others."

NAR - "Higher Lending Standards Can Help Curb Abusive Practices, NAR Tells Banking Regulators" (5-7-07)

"The National Association of Realtors® is calling on bank regulators to adopt higher lending standards while giving lenders more flexibility in determining whether homebuyers can afford to meet their loan obligations."

CAR - "Amendments to SB 670 legislation will place responsible limits on private transfer taxes" (5-7-07)

"Senate Bill 670 (Correa), “Private Transfer Tax Prohibition” has been amended to place responsible restrictions on private transfer taxes levied by developers and limit the proceeds to environmental and affordable housing efforts related to the new development on which the private transfer taxes are imposed. The original legislation, sponsored by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), brought needed attention to a number of significant problems related to the imposition of private transfer taxes and proposed an outright prohibition on private transfer taxes."

Yahoo - "Investors Await Fed's Decision on Rates" (5-7-07)

"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."

Bloomberg - "Moody's, S&P Understate Subprime Risk, Study Says" (5-7-07)

"Moody's Investors Service, Standard & Poor's and Fitch Ratings understate the risks of subprime mortgage bonds, putting funding for the U.S. housing industry at risk, according to a study to be released today. The ratings companies can't evaluate the probability of losses because home loans that back the debt have constantly changing underwriting standards, according to the study by Joshua Rosner, a managing director of investment research firm Graham Fisher & Co. in New York, and Joseph R. Mason, an associate finance professor at Drexel University in Philadelphia."

Asia Times - "Investing in a fool's paradise" (5-7-07)

"The rapid slowing of America's economy has been shrugged off by stock markets worldwide, which continue to vault higher on the increasingly misplaced notion that corporate profits will grow perpetually. In sharp contrast, currency markets have grasped the idea that the US economy is falling into recession, punishing the dollar. As economic weakness intensifies in the months ahead, expect dollar depreciation to accelerate. The dollar is likely to drop by at least 15% against most currencies by the end of 2007."

Bradenton Herald - "New Century to lay off 2,000" (5-7-07)

"Financially strapped subprime mortgage lender New Century Financial Corp. failed to receive any bids for its mortgage loan origination business, forcing it to shut down the unit and lay off about 2,000 employees, the company told employees Thursday. The Irvine-based company, which has been preparing to sell off its assets under Chapter 11 bankruptcy protection since last month, notified employees during a conference call that they would be laid off effective Friday."

USA Today - "Parents selling homes when kids go to college" (5-7-07)

"In towns such as this, where highly rated public schools are supported by even higher property taxes, many parents faced with college bills are selling the empty nest while it's still warm. By moving only as far as the next town, they can cut their local taxes in half. As a result, Graduation Day and Moving Day are getting closer and closer. In the weeks before high school ends, "you'll see the for-sale signs going up," says Ros Schulman, whose son is college-bound."

SFGate.com - "Real estate short sales: "win-win" or reward for failure to live within one's means?" (5-7-07)

"Usually, when something sounds too good to be true -- it is. But as more people are facing the possibility of foreclosure -- losing both their house and their credit in a process fraught with humiliation -- a little-known transaction known as a 'short sale' may seem like a dream come true. Short sales occur when a lender allows a homeowner in default to sell a house for less than the total value of the loan. In most cases, the lender then forgives the remaining portion of the debt."

The Market Oracle - "Real Estate Crash a Post Mortem for the Stock Market" (5-7-07)

"The real estate market is crashing faster than anyone had anticipated. Housing prices have fallen in 17 of 20 of the nation's largest cities and the trend lines indicate that the worst is yet to come. March sales of new homes plummeted by a record 23.5% (year over year) removing all hope for a quick rebound. Problems in the subprime and Alt-A loans are ing in previously “hot markets” resulting in an unprecedented number of foreclosures. The defaults have slowed demand for new homes and increased the glut of houses already on the market. This is putting additional downward pressure on prices and profits. More and more builders are struggling just to keep their heads above water. This isn't your typical 1980s-type “correction”; it's a full-blown real estate cyclone smashing everything in its path."

Detroit Free Press - "Buying under the radar" (5-7-07)

"As the housing market has tightened across the country in recent months, home auctions have become more popular as a way to sell a house when facing a line. Now, regional homebuilders are getting into the act through a unique program called Sale by Sealed Bid."

Real Estate Journal - "As Market Cools, Builders Face Lawsuits and a Rash of Complaints" (5-7-07)

"In the latest fallout from the housing market's decline, disputes are breaking out between builders and buyers who signed contracts for new homes and condos when the market was hot -- and now want to get out of them. Even as many of the new buildings are completed, buyers are filing lawsuits claiming they were duped into purchases they couldn't afford, or victimized through fraudulent investment schemes. Some are scrutinizing their contracts looking for loopholes, or searching out tiny flaws in finished homes that might allow them to back out without losing their deposits."