The Wall Street Journal - "Bank of America to Invest $2 Billion in Countrywide" (8-22-07)

"Bank of America Corp. is making a $2 billion equity investment in Countrywide Financial Corp., the embattled mortgage giant, according to people familiar with the situation. Bank of America will purchase $2 billion worth of preferred Countrywide stock yielding 7.25%"

MBA - "Q2 2007 Commercial/Multifamily Loan Originations Remain Strong Overall" (8-22-07)

"Commercial and multifamily mortgage bankers' loan originations were once again strong in the second quarter, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Up from the first quarter, second quarter originations were 40 percent higher than compared to the same period last year. The increase was seen across most property types and investor groups."

MBA - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (8-22-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 17, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 641.1, a decrease of 5.5 percent on a seasonally adjusted basis from 678.7 one week earlier. On an unadjusted basis, the Index decreased 6.5 percent compared with the previous week and was up 14.2 percent compared with the same week one year earlier. The Refinance Index decreased 6.4 percent to 1806.3 from 1929.6 the previous week and the seasonally adjusted Purchase Index decreased 5.0 percent to 441.5 from 464.9 one week earlier. On an unadjusted basis, the Purchase Index decreased 6.6 percent to 467.5 from 500.4 the previous week. The seasonally adjusted Conventional Index decreased 5.7 percent to 932.0 from 987.9 the previous week, and the seasonally adjusted Government Index decreased 4.4 percent to 156.0 from 163.2 the previous week."

Bloomberg - "Wells Fargo Gorges on Mark-to-Make-Believe Gains" (8-22-07)

"There's the kind of earnings investors can take to the bank. And then there's the kind the bank can show to investors. Word to Wells Fargo & Co. investors: Beware the second kind. Last quarter Wells Fargo reported record net income of $2.28 billion, up 9 percent from a year earlier. Read the footnotes to its latest quarterly report, though, and you will see a new term in accounting lingo called 'Level 3' gains. Without these, the financial-services company's earnings would have declined."

Bloomberg - "U.S. Stocks Rally on Takeover Speculation; MGM, Nymex Advance" (8-22-07)

"U.S. stocks climbed for a fifth day on speculation the Federal Reserve's actions to assuage the surge in the cost of credit will lead to a pickup in takeovers. MGM Mirage, the world's second-largest casino company, posted its biggest gain in three months after Dubai agreed to buy a stake. Nymex Holdings Inc. climbed after its chairman said the world's largest energy exchange may be bought."

Bloomberg - "H&R Block Taps Credit Line, Cites `Unstable' Markets" (8-22-07)

"H&R Block Inc., the biggest U.S. tax preparer, tapped bank lines of credit twice in the past week after its usual sources of cash began drying up. The company borrowed $200 million on Aug. 16 because turmoil in credit markets curbed access to commercial paper, used to meet immediate cash needs, H&R Block said today in a statement. The loan was repaid on Aug. 20, when Kansas City, Missouri-based Block drew an additional $850 million."

Bloomberg - "Bernanke's Strategy of Increasing Liquidity Survives" (8-22-07)

"The Federal Reserve's strategy of increasing liquidity rather than resorting to a cut in the benchmark interest rate survived a third day. Yields on Treasury bills rose yesterday after the New York Fed lowered the cost of borrowing securities from its own portfolio to ease a shortage in the market. The action followed a reduction in the Fed's rate on direct loans to banks on Aug. 17, the impact of which officials said they need time to assess."

Bloomberg - "Bonuses on Wall Street Threatened by Credit Crunch" (8-22-07)

"The credit-market freeze that's paralyzing leveraged buyouts, mergers and myriad computer-driven trading strategies may cut Wall Street bonuses for the first time in five years. 'There's a lot of pessimism out there,' said Gary Goldstein, chief executive officer of executive-search firm Whitney Group in New York. 'Looking at the world today as we see it and the impact the crunch is likely to have, it looks like bonus pools will decline.'"

The Wall Street Journal - "Fed Is Hopeful on Steps So Far" (8-22-07)

"Federal Reserve officials are cautiously optimistic that the series of steps they have taken to stabilize markets have started to work. Officials acknowledge conditions are far from calm, and markets could easily take a turn for the worse. But they cite stable stock prices, a pickup in issuance of jumbo mortgages and other factors as evidence that in recent days conditions have improved, though gradually, instead of worsened."

The Wall Street Journal - "How FHA Could Help Borrowers" (8-22-07)

"As the subprime-mortgage crisis ripples through the broader housing market, the Bush administration is eyeing an often overlooked federal mortgage insurer to help low- and middle-income homeowners avoid foreclosure. President Bush has balked at allowing mortgage giants Fannie Mae and Freddie Mac to buy more mortgages for their portfolios to ease the credit crunch triggered by rising defaults on home loans to borrowers with poor credit. But he said earlier this month that he supports giving the Federal Housing Administration more flexibility to help those facing foreclosure refinance their homes."

Yahoo - "3 ways to help borrowers without bailing them out" (8-22-07)

"The July foreclosure numbers that came out Tuesday are a sobering reminder of just how bad the nationwide mortgage crisis is becoming. Fueled in large part by shaky lending to people with less than perfect credit, foreclosure filings nearly doubled from a year ago and are running at an annual rate of more than 2 million."

Yahoo - "Mortgage Lenders Move to Cut Costs" (8-22-07)

"Accredited Home Lenders Holding Co. will slash its work force by more than half and stop accepting new mortgage applications in the U.S. as it struggles to survive in the troubled home lending industry, the company said Wednesday. San Diego-based Accredited, which issued $15.77 billion in home loans last year, said it will cut about 1,600 of its 2,600 positions and close 65 branches."

The San Diego Union Tribune - "Put moratorium on foreclosures, state consumer coalition advises" (8-22-07)

"Consumer advocates yesterday called for a moratorium on home foreclosures, warning that California is facing a tidal wave of foreclosures over the next year as more homeowners are hit with payment increases brought on by subprime loans and risky mortgages. 'The curve is really starting to go up,' said Alan Fisher, executive director of the California Reinvestment Coalition, a group of nonprofit organizations and public agencies that advocate for the poor and minorities. 'We're seeing just the beginning of a problem.'"

eFinanceDirectory - "Home Foreclosures Rise, a Moratorium on Foreclosures Is Proposed" (8-22-07)

"Some of the increase in foreclosure activity can be attributed to classic factors like job loss, health problems, divorce, etc. This is most evident in Michigan and Ohio, two states that have experienced a wave of job loss in manufacturing sectors. In other states like California, Florida and Georgia, the blame lies with irresponsible borrowing and lending. Over the last few years, homebuyers in these states have stretched their finances to the limit. To get the most house for the money, many borrowers used exotic mortgages like interest only loans and ARMs with low teaser rates. Of course, once the rates and terms change on these loans, it can be very difficult to afford the home."