Bloomberg - "Countrywide's Net Declines 33 Percent on Home Equity" (7-24-07)

"Countrywide Financial Corp., the biggest U.S. mortgage lender, reported a third straight quarterly earnings decline and reduced its 2007 forecast as a growing number of consumers fell behind on home-equity loan payments. Second-quarter net income tumbled 33 percent to $485.1 million, or 81 cents a share, from $722.2 million, or $1.15, a year earlier, the Calabasas, California-based company said in a statement today. Analysts estimated Countrywide would earn 91 cents. Revenue fell 15 percent to $2.55 billion."

Bloomberg - "KKR, Homeowners Face Funding Drain as CDO Sales Slow" (7-24-07)

"The Wall Street money-machine known as collateralized debt obligations is grinding to a halt, imperiling $8.6 billion in annual underwriting fees and reducing credit for everyone from buyout king Henry Kravis to homeowners. Sales of the securities -- used to pool bonds, loans and their derivatives into new debt -- dwindled to $9.1 billion in the U.S. this month from $42 billion in June, analysts at New York-based JPMorgan Chase & Co. said in a report yesterday. The market, which was 'virtually shut' earlier this month, is showing 'signs of life,' the bank said."

Bloomberg - "Dollar Falls to Record Against Euro as Credit Concern Spreads" (7-24-07)

"The dollar declined to a record against the euro and weakened to a 26-year low versus the pound on speculation the rout in subprime mortgages is spreading, slowing U.S. growth. The currency's drop accelerated after Countrywide Financial Corp., the biggest U.S. mortgage lender, reported a third straight quarterly earnings decline as more consumers fell behind on home equity loan payments. The yen gained versus all but one of the 16 most actively traded currencies as U.S. stocks fell and traders pared carry trades in which they borrow in the yen to invest in higher-yielding assets."

CNN - "Subprime loan alternatives" (7-24-07)

"After the subprime mortgage market collapsed, many products that were widely available have disappeared from the scene. More than a score of subprime lending specialists have closed their doors. And many banks like Washington Mutual (Charts, Fortune 500) and Wells Fargo (Charts, Fortune 500) have cut back on or eliminated subprimes, leaving many credit-damaged home buyers scrambling to find a loan. But now that the collapse has shaken out some of the sketchier players, some familiar and more reliable alternatives to subprime are making a comeback -- but they do require some work."

Mish's Global Economic Trend Analysis - "Class Warfare" (7-24-07)

"Bernanke was grilled by Congressmen Ron Paul, Luiz Gutierrez, and Barney Frank at the Fed's semi-annual report to Congress. Caroline Baum was discussing this in Congress Draws Bernanke Out on Class Struggle. Just when you thought increased transparency on the part of the Federal Reserve was contributing to enhanced sophistication on the part of the public, along comes evidence to the contrary. "I believe economic inequality is a product of monetary policy choices on the part of the Fed," said Congressman Luiz Gutierrez, Democrat of Illinois, at yesterday's monetary policy hearing before the House Financial Services Committee."

Real Estate Journal - "Southern California Home Sales Hit Slowest Pace in 14 Years" (7-24-07)



Real Estate Journal - "States Aim to Stem Tide Of Home Foreclosures" (7-24-07)

"Hoping to slow the quickening pace of home foreclosures, about a half-dozen states are setting up funds to help homeowners with high-risk subprime mortgages refinance to more-affordable loans. The states -- which include Maryland, Massachusetts, New Jersey, New York, Ohio and Pennsylvania -- are expected to invest a total of more than $500 million in the effort. That isn't much, given the size of the problem, but state officials hope it will be enough to keep some vulnerable low- and moderate-income neighborhoods from sliding into decline."