MBA - "Mortgage Applications Decrease In Latest MBA Survey" (6-20-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 15, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 643.7, a decrease of 3.4 percent on a seasonally adjusted basis from 666.5 one week earlier. On an unadjusted basis, the Index decreased 4.1 percent compared with the previous week and was up 13.2 percent compared with the same week one year earlier. The Refinance Index decreased 4.2 percent to 1776.8 from 1854.8 the previous week and the seasonally adjusted Purchase Index decreased 3.0 percent to 450.9 from 464.7 one week earlier. The seasonally adjusted Conventional Index decreased 3.7 percent to 943.0 from 979.1 the previous week, and the seasonally adjusted Government Index decreased 0.3 percent to 144.7 from 145.2 the previous week."

Reuters - "Bear CDO lists total at least $1.44 bln - sources" (6-20-07)

"The sale of securities from troubled Bear Stearns hedge funds includes at least $1.44 billion in collateralized debt obligations, according to bid lists obtained by Reuters. The lists, circulated by JPMorgan Securities and Morgan Stanley, include CDOs managed by Tricadia Capital, Strategos Capital Management and Bear Stearns Asset Management."

New York Post - "SUBPRIME STREET IS FEELING THE HEAT" (6-20-07)

"As a Bear Stearns internal hedge fund begins collapsing, all of Wall Street is wondering if other funds might follow suit. One hedge fund portfolio manager at a $4 billion fund told The Post that auctioning off the assets of Bear's High Grade Structured Credit Strategies Enhanced Leverage fund would unleash Wall Street's dirty secret."

Houston Chronicle - "Fla., Calif. Face Home Price Drops" (6-20-07)

"The days of oceanfront property as a good investment might be a thing of the past. Some homeowners in California, Florida and the southwestern U.S. now face more than a 60 percent chance their property will be worth less in two years, according to a new study by a mortgage insurer. But for Texans and Midwesterners, there is much less reason to worry."

MSN - "Mortgage applications drop" (6-20-07)

"Applications to buy and refinance homes dropped last week, an industry trade group said on Wednesday, the latest sign that U.S. housing remains mired in a downturn. The Mortgage Bankers Association's mortgage application index slid 3.4 percent to a seasonally adjusted 643.7 in the week ended June 15. The drop in applications piled on to reports from the country's builders and the government this week suggesting any sustained housing rebound could be next year's business."

Bloomberg - "Rate Rise Pushes Housing, Economy to `Blood Bath'" (6-20-07)

"The worst is yet to come for the U.S. housing market. The jump in 30-year mortgage rates by more than a half a percentage point to 6.74 percent in the past five weeks is putting a crimp on borrowers with the best credit just as a crackdown in subprime lending standards limits the pool of qualified buyers. The national median home price is poised for its first annual decline since the Great Depression, and the supply of unsold homes is at a record 4.2 million, the National Association of Realtors reported."

CNN - "Foreclosures drift to Sun Belt from Rust Belt" (6-20-07)

"For sheer volume, housing foreclosures across the nation appear to be moving from the Rust Belt to the Sun Belt. A study for CNNMoney.com by RealtyTrac, an online marketer of foreclosure properties, showed that 139 of California's ZIP codes fell within the top 500 for total foreclosure filings in the United States. The next highest count for any state is less than half that at 72 and is in another sun-belt state - Florida."

Mish's Global Economic Trend Analysis - "Delinquencies, Foreclosures, Dumbness" (6-20-07)

"The Modesto California Bee is reporting Hundreds delinquent on taxes. Modesto and Patterson this summer are preparing to speed the foreclosure process on hundreds of homes because an unusually large number of residents in six subdivisions are delinquent on their Mello Roos taxes. About 145 homes are at risk in parts of the Village I neighborhood in east Modesto and in the Fairview Village development in southwest Modesto. In Patterson, 489 homes are delinquent on their Mello Roos taxes in the Patterson Gardens, Walker Ranch, Miraggio and Sutter Point developments."

Yahoo - "Housing Construction Down in May" (6-20-07)

"Construction of new homes fell in May as the nation's homebuilders were battered by the crisis in subprime lending and rising mortgage rates. Housing, which is struggling through its biggest downturn in 16 years, is expected to continue to face troubles in the months ahead before starting to stage a sustained rebound in 2008."

Yahoo - "Moody's Downgrades Subprime Investments" (6-20-07)

"Moody's Investors Service said Friday it downgraded 131 mortgage investments backed by loans issued to people with weak, or subprime, credit histories. More people who took out subprime mortgages, especially adjustable-rate loans issued over the past two years, have been defaulting on their monthly payments as their mortgages reset to higher rates."

Los Angeles Times - "L.A. Asking Prices Slip Again, to $539K, as Inventory Climbs" (6-20-07)

Asking prices in greater L.A. fell slightly in the last week as inventory continued to pile up, according to Housing Tracker's analysis of MLS listings, which we monitor here every week. Housing Tracker shows the median asking price fell $1,000, to $539,000 this week. Inventory lurched higher again, with an additional 558 homes listed, and now 41,324 are on the market. More on the numbers: The $539,000 median asking price represents a drop of 6.9% over the last year, and 1.1% over the last month. Inventory increased 5.7% in the last month and 18.7% over the last year."

Charles Hugh Smith - "How the Housing Bubble/Credit Bubble Will Pop" (6-20-07)

"When 2008 rolls around and the U.S. economy is sinking with frightening momentum into a quagmire, you'll be glad you read this entry. Why? Because you anticipated every step of the implosion and warned your friends who were still floating complacently down that river in Egypt (de-nial). In keeping with our theme of context, let's begin by noting that the proper context for the housing bubble is the all-encompassing global credit bubble which has inflated every asset class. With this fundamental firmly in mind, let's follow Deep Throat's advice from the classic film All the President's Men and 'Follow the money.'"

Credit Suisse - "Mortgage Liquidity du Jour: Underestimated No More" (6-20-07)

"In response to the recent turmoil in the mortgage market, we surveyed our private homebuilders and their mortgage lenders to asses the new home market’s exposure to mortgage products that are at greatest risk for tightening and increased regulation in the coming months --- it’s not just a subprime issue. We believe that 40% of the market (share of subprime and Alt-A) is at risk of significant fallout from tightening credit and increased regulatory scrutiny. In particular, we believe the most pressing areas of concern should be stated income (49% of originations), high CLTV/piggyback (39%), and interest only/negative amortizing loans (23%). The proliferation of these exotic mortgage products has been disproportionately weighted to former hotbeds such as California, Nevada, Arizona and Florida, which have accounted for the lion share of builder profits."

Orange County Register - "Opteum Financial closes doors early" (6-20-07)

"Workers at Opteum Financial Services thought they had four days left before they lost their jobs, but when they showed up for work Tuesday, they found their way blocked by security guards and were told the office was closed, effective immediately, said Mary Glass Schannault. She was a senior vice president at the mortgage company and one of those who suddenly found themselves out of work."

Orange County Register - "Could housing pose risk to economy?" (6-20-07)

"Orange County is the sixth riskiest major housing market in the nation. Or so says fresh rankings from one major player in the mortgage game. And, believe it or not, this ranking is a noteworthy improvement. PMI Group, the mortgage insurer, just revamped its housing risk metrics that are based on local pricing trends and regional economics. When you're like PMI, and you're in the business of protecting lenders and mortgage investors from themselves, you'd better be up-to-date on what's happening in housing markets."