MBA - "Media Alert: Joint Letter Asking Congress to Encourage OFHEO to Withdraw Proposed Guidance Allowing Them to Decrease Conforming Loan Limit" (7-13-07)

"Today the Mortgage Bankers Association (MBA), along with the National Association of Home Builders (NAHB) and the National Association of Realtors (NAR) sent the attached joint letters to the leadership of the House Financial Services Committee and the Senate Banking Committee asking that they encourage the Office of Federal Housing Enterprise Oversight (OFHEO), the regulator of Fannie Mae and Freddie Mac, to withdraw proposed guidance that would allow the regulator to decrease the conforming loan limit."

MBA - "Freddie Mac Revise Underwriting Requirements for Nontraditional Mortgages Consistent" (7-13-07)

"Freddie Mac are implementing changes to our underwriting requirements consistent with the practices referenced in the Interagency Guidance on Nontraditional Mortgage Product Risks ('the Guidance'). The Guidance was issued to address risks associated with Mortgage products that allow Borrowers to defer payment of principal or interest and/or that could result in negative amortization ('nontraditional Mortgages')."

MBA - "Statement by OFHEO Director on Issuance of Letters by GSEs Regarding Nontraditional and Subprime Mortgage Products" (7-13-07)

"Fannie Mae and Freddie Mac today issued letters to their lender customers setting forth a program for assuring the Enterprises purchase mortgages made in conformance with the Interagency Guidance on Nontraditional Mortgage Product Risks. This guidance was promulgated by federal depository institution regulators and adopted by many state financial regulators. OFHEO made this guidance applicable to Fannie Mae and Freddie Mac. The guidance focuses on certain classes of mortgages with unique underwriting criteria, which typically allow borrowers to defer principal and, sometimes, interest. They include loan products that offer low introductory interest rates that later reset to higher rates and/or have flexible payment options with the potential for negative amortization. The Interagency Guidance was designed to ensure consistent application of sound and prudent credit underwriting standards, risk management practices, and protections for the consumer."

MBA - "Fannie Mae Revises Policies inResponse to Interagency Guidance on Nontraditional Mortgage Product Risks" (7-13-07)

"On October 4, 2006 the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision and the National Credit Union Administration (collectively referred to as the Federal Banking Agencies) jointly issued the Interagency Guidance on Nontraditional Mortgage Product Risks (the Guidance).The Guidance applies to all institutions regulated by the Federal Banking Agencies, and was effective upon publication."

Bloomberg - "U.S. Urges China to Buy Mortgage Securities Amid Subprime Woes" (7-13-07)

"The U.S. is urging China's central bank to buy more mortgage-backed securities after a surge in defaults by risky borrowers in the world's largest economy eroded demand for such instruments. 'It's not a matter whether they're going to do more business in mortgage-backed securities, it's who they're going to business with,' U.S. Department of Housing and Urban Development Secretary Alphonso Jackson told reporters in Beijing. He met with central bank Governor Zhou Xiaochuan and Minister of Construction Wang Guangtao in the nation's capital this week."

Bloomberg - "GE Will Seek Buyer for Subprime Unit After Defaults" (7-13-07)

"General Electric Co. plans to sell WMC Mortgage, the company's three-year-old U.S. subprime mortgage unit, following a surge in defaults by borrowers. 'The mortgage industry has greatly changed since the purchase of WMC,' Laurent Bossard, chief executive officer of the division, said in an e-mail to employees yesterday. 'The current subprime market environment has made a significant negative impact on the business.'"

Bloomberg - "CDOs Lose Marbles; Credit `Kerplunks!'" (7-13-07)

"Investors asking how many beans make four in the market for collateralized-debt obligations are realizing that the likely answer is three if you're lucky, fewer if you're not. Moody's Investors Service cut its ratings on $5.2 billion of bonds backed by subprime home loans this week, and put a further $5 billion of CDOs on review. Standard & Poor's yesterday lowered its assessment of $6.39 billion of debt, after earlier putting the figure at $12 billion (which suggests S&P should spend some of its fees on new beads for the office abacus)."

CNN - "S&P: Whoops! A $5 billion subprime blunder" (7-13-07)

"Standard & Poor's admitted to making a nearly $5 billion blunder in correcting its own estimate for subprime securities it is reviewing for ratings cuts. S&P corrected the volume of residential mortgage-backed securities it placed under review for downgrade on Tuesday to $7.35 billion from $12.1 billion. 'This is obviously sloppy by S&P,' said Mirko Mikelic, a fund manager at Fifth Third Asset Management in Grand Rapids, Michigan. 'I don't think anyone's doing back flips.'"

Orange County Register - "Orange County home prices and sales" (7-13-07)

"For the 22 business days ending June 26, sales for all types of Orange County home sales decreased 29.8 percent. The median sales price increased .6 percent. The median is where half the homes sold for more and half for less. Types of homes selling, as well as home value changes, cause the median to change."

Orange County Register - "State No. 2 in foreclosures" (7-11-07)

"California homeowners are among the most likely in the nation to lose their home to the bank, according to an industry report released Thursday. In June, the Golden State logged the second highest rate of foreclosure – one filing for every 315 households – in the nation, said RealtyTrac of Irvine. In May it was third highest. Nevada was No. 1."

Los Angeles Times - "State issuing Ameriquest refund forms" (7-13-07)

"Eligible California customers who took out loans with Ameriquest Mortgage Co. from 1999 to 2005 will soon be receiving forms to claim a share of $51 million the company has agreed to pay to settle accusations of predatory lending practices. The forms, which began being mailed Thursday by the state attorney general's office, will go to an estimated 78,000 households that had mortgages with Orange-based Ameriquest."

Real Estate Journal - "Strong Mortgage Data Draw Some Skeptics" (7-13-07)

"A rare piece of positive news about housing is raising some skeptical eyebrows among economists. The Mortgage Bankers Association survey of weekly mortgage applications showed a seasonally adjusted 3.8% increase last week in applications for mortgages to buy homes -- up 7% from the same week last year. Applications have been rising steadily since February, a lone indicator of looming strength in the housing market amid a sea of pessimistic news. Measures of home sales have been sinking."