Orange County Register - "FBI probes claims of real estate fraud involving dead couple" (5-4-07)

"FBI officials said Thursday that they are investigating claims that a Mission Viejo couple killed in a confrontation with police were involved in real estate fraud. 'We're assisting Laguna Beach Police Department on information that the Parks were involved in real estate fraud,' said Laura Eimiller, a bureau spokeswoman. 'We're reviewing documents in our possession to see if they were committing fraud.'"



CNN - "April job growth: Slowest since '04" (5-4-07)

"Employers added fewer jobs in April than at anytime in more than two years, as the government's closely watched reading on the nation's labor market came short of Wall Street expectations. The report shows a net gain of 88,000 jobs in April, down from the revised gain of 177,000 in the March report. Economists surveyed by Briefing.com had forecast a gain of 100,000 in the most recent report."


Yahoo - "States Rush to Act on Mortgage Reform" (5-4-07)

"As state lawmakers rush to reform lending practices that have contributed to a recent surge of mortgage defaults and foreclosures, consumer advocates say these efforts fall short of what is truly needed: a federal law protecting home buyers. The number of foreclosures nationally jumped 47 percent in March from a year ago, according to RealtyTrac Inc., a problem concentrated among borrowers with shaky credit who took out higher-priced loans."

Mercury News - "New Century to lay off 2,000 workers as unit goes unsold" (5-4-07)

"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 around 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."

Forbes - "GM's Well-Timed Exit" (5-4-07)

"General Motors’ decision last year to unload a 51% stake in GMAC, its financing arm, appears to be exceedingly well-timed. Not long ago, GMAC was the only thing propping up GM earnings. The company barely made money on its auto operations, but was raking in dough -- $2.2 billion in 2006 – from GMAC’s car loans and home mortgages."

Hartford Courant - "Looking Out For Borrowers" (5-4-07)

"Lenders, consumer groups and other players in the subprime mortgage market reached agreement Wednesday with Senate Banking Committee Chairman Christopher J. Dodd on ways to avoid an epidemic of foreclosures, including a greater effort to move beleaguered borrowers into mortgages they can afford. The two-page 'statement of principles" included a pledge that, where possible, "refinancing to prime loans should be made in as streamlined and low-cost fashion as possible.'"

CNBC - "Tip of the Iceberg" (5-4-07)

"As lawmakers on Capitol Hill stand in front of brightly colored placards, touting their 'Save the Subprimer' proposals (witness Sen. Charles Schumer today), and banks get together with community groups in aggressive campaigns to seek out those in danger of default and save them from ultimate foreclosure (witness EMC's "Mortgage Mod Squad"), I fear something is getting lost. We're not in the thick of the crisis; we're right at the start. Three hundred billion dollars worth of adjustable rate mortgages are set to re-set in the next two fiscal quarters. We've already seen what happened in the first quarter of this year. Foreclosures spiked, lenders balked and the spring housing market shut its shutters. Every industry association, from the Home Builders to the Realtors, revised their forecasts, pushing any thoughts of a recovery back from 2007 far into 2008."

Business Journal - "Home values drop 7.4 percent" (5-4-07)

"Median home values in the Sacramento area dropped 7.4 percent in the first quarter from a year ago, the latest evidence the housing market slowdown continues in the region. Yolo County endured the region's largest decline in value, at 13.2 percent to $394,990, according to Zillow.com, an online real estate tracking company in Seattle."

The New York Times - "A Warning on Risk in Commercial Mortgages" (5-4-07)

"Spurred by the collapse of the subprime mortgage market, the leading bond rating agencies are beginning to crack down on what they see as risky lending practices in commercial real estate. Low interest rates and an abundance of investment capital have led to heady times for buyers and sellers of office buildings, hotels and other income-producing property. Buildings have traded at record prices and loan terms have become increasingly generous, with many buyers putting little or no equity into the deals."

Bloomberg - "Fed, Criticized by Congress, Plans Mortgage Hearing" (5-4-07)

"The Federal Reserve Board, under fire from Congress for lax enforcement during the biggest mortgage boom in American history, will hold a public hearing on how it might use its authority to prevent abuses in the mortgage market. 'The goal is to provide sustainable homeownership through responsible lending,' Fed Governor Randall Kroszner, the central bank's chief liaison with the banking industry, said in a press release."

Los Angeles Times - "N.Y. senator aims to help homeowners" (5-4-07)

"In a bid to stop a wave of foreclosures, Sen. Charles E. Schumer (D-N.Y.) on Thursday urged Congress to approve $300 million for counseling and outreach efforts to help beleaguered borrowers hold onto their homes through refinancing deals and other financial strategies that would require cooperation from private lenders. Schumer also proposed legislation to hold mortgage brokers and independent, non-bank lenders such as Ameriquest Mortgage Co. legally responsible for making loans that borrowers can understand and can afford."