NAHB - "Housing Starts Continue Downward In July" (8-16-07)

"Providing further evidence that the downward correction in the housing market continues, Commerce Department data released today for July indicates that home builders started work on new housing units that month at the slowest pace since January 1997. The government report indicated that total housing starts declined 6.1 percent to a seasonally adjusted annual rate of 1.38 million units in July."

NAR - "Realtor® Award Finalists Are Good Neighbors" (8-16-07)

"Realtors® across the country work hard to give back to their communities, often donating countless hours and dollars to organizations that offer extra help to those in need. The National Association of Realtors® today announced 10 such individuals as finalists for REALTOR® Magazine’s 2007 Good Neighbor Awards. The Good Neighbor Awards program, now in its eighth year, recognizes Realtors® who volunteer countless hours to improve the quality of life for others. This year there were more than 320 entries—an all-time high."

CBIA - "California New Home Sales in June Fall 26% from June 2006, CBIA Announces" (8-16-07)

"June sales levels at California’s major new-home communities continue to lag behind last year’s pace, the California Building Industry Association reported today. The monthly CBIA/Hanley Wood Market Intelligence New Home Sales and Pricing Report showed that sales in June were 26.2 percent below June 2006, continuing a trend that has occurred since the beginning of the year. For the month, 5,585 homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based Hanley Wood Market Intelligence, compared to 7,565 in June 2006. Sales of single family homes dropped by 16.6 percent, sales of townhomes and 'plexes' – duplexes, triplexes, etc. – were down 25.4 percent and sales of condominiums were down 55.3 percent. A large portion of that decline, however, came from the cancellation of a large condo tower complex in downtown Sacramento."

NAR - "Realtors®: NAR Wants You To Show Your Face in the Centennial Celebration" (8-16-07)

"As the National Association of Realtors® approaches its centennial year in 2008, Realtors® are invited to become a part of history by submitting photos of themselves for a new campaign, 'The Face of Real Estate for 100 Years.' The campaign was announced today at NAR’s 2007 Leadership Summit, during which NAR leaders meet with their counterparts from state and local Realtor® associations to discuss industry issues, priorities and goals."

The Washington Post - "Approved Home Loans No Longer Done Deals" (8-16-07)

"'There will be deals that fall through,' Cecala said. 'It's not easy to transfer a loan and all that paperwork. And it's not that easy for one lender to take the other lender's word for everything. In cases, if a lender has gone bankrupt, a lot of people won't want to touch their loans because they think there's shoddy underwriting involved.'"

Reuters - "Global stocks dive as U.S. bonds jump" (8-16-07)

"Fears that tighter credit in the U.S. subprime housing sector will choke off growth in other sectors sent stock markets around the world sharply lower on Thursday while government bonds rallied in a flight to safety. The yen soared against all of the major currencies as investors unwound risky trades financed with borrowed yen."

CNN - "Countrywide forced to turn to banks for help" (8-16-07)

"Embattled Countrywide Financial, the nation's No. 1 mortgage lender, was forced to tap an $11.5 billion line of credit Thursday to run its business during the credit crunch, and said it's toughening underwriting standards on home loans. At the same time, SEC filings show the company's chairman has made a $13 million profit in the past month selling Countrywide stock on the decline."

Bloomberg - "U.S. Housing Starts Dropped 6.1% to 1.381 Million Pace in July" (8-16-07)

"Builders in the U.S. started work on the fewest homes in a decade in July as the industry showed no sign of recovering from the 18-month recession. The greater-than-forecast 6.1 percent decrease to an annual rate of 1.381 million, followed a 1.47 million pace in June, the Commerce Department said today in Washington. Building permits also fell to a 10-year low."

Bloomberg - "Hedge-Fund Guy Atones for His Subprime Bond Sins: Mark Gilbert" (8-16-07)

"Dear investor, we'd like to take this opportunity to update you on the recent performance of our hedge fund, Short-Term Capital Mismanagement LLP. As you know, market selection for the entire fund is guided by a proprietary investing tool we like to call 'a dartboard.' Once the asset classes are decided, individual security selections are generated by digitizing our unique hexagonal cuboid models."

Yahoo - "Credit Anxiety, Countrywide Panic" (8-16-07)

"Stocks around the world continued to slide this morning on the U.S. subprime mortgage mess. (MarketWatch) U.S. Treasury Secretary Henry Paulson conceded that the current turmoil in the market 'will extract a penalty' on U.S. growth, but said the economy was strong enough to avoid a recession. (CNNMoney.com) Meanwhile, St. Louis Fed President William Poole said that only a 'calamity' would justify an interest rate cut, further depressing investor sentiment. (AP in Yahoo! Finance) 'Blood is hitting the streets,' said Patrick Chang of CIMB-Principal Asset Management. 'Everyone seems to be panicking, and there's reason to panic.' (Los Angeles Times, free registration required)"

Yahoo - "Fed's Poole says no need for emergency rate cut" (8-16-07)

"St. Louis Federal Reserve Bank President William Poole said on Wednesday financial market turmoil had not undermined the U.S. economy and there was no need for the central bank to ride to the rescue with an emergency rate cut. 'It's premature to say that this upset in the market is changing the course of the economy in any fundamental way,' he said in an interview with Bloomberg. 'Obviously, there could be an impact, but we have to rely on some real evidence.'"

FXStreet.com - "Fannie Mae predicts continued mortgage defaults through 2008 UPDATE" (8-16-07)

"Mortgage giant Fannie Mae said it expects continued mortgage defaults into next year will increase its credit losses to its historical average of 0.04-0.06 pct in 2007, and possibly higher in 2008. 'Downward pressure on home prices in 2006, particularly in parts of the Midwest, led to an increase in credit losses,' Fannie Mae president and CEO Daniel Mudd said in a statement. In a phone call today, Mudd added losses could hit the historical average this year, although Fannie's credit losses through 2007 are only 0.027 pct so far."

Bloomberg - "Countrywide Taps $11.5 Billion Credit Line From Banks" (8-16-07)

"Countrywide Financial Corp., the biggest U.S. mortgage lender, borrowed the entire $11.5 billion available in bank credit lines as the global financial crisis curbed access to short-term financing. Countrywide turned to the emergency loan, which it said was provided by a group of 40 banks, a day after Merrill Lynch & Co. raised the prospect of bankruptcy for the Calabasas, California- based lender. Australia's Rams Home Loans Group Ltd. and Canada's Coventree Inc. also sought emergency funding today."

Bloomberg - "Moody's Warns of Potential LTCM-Scale Fund Collapse" (8-16-07)

"Moody's Investors Service fueled concern that the global credit crisis is worsening by speculating that a hedge fund collapse on the same scale as Long-Term Capital Management LP in 1998 is possible. Hedge funds face potential losses on collateralized debt obligations, securities packaging bonds, loans and other assets, Chris Mahoney, vice chairman of Moody's, said on a conference call today. The funds are unable to agree on prices to sell riskier assets, causing the market to seize up, Mahoney said."

Bloomberg - "H&R Block CEO Says Breeden Sent `Misleading' Message" (8-16-07)

"H&R Block Inc., the U.S. tax preparer facing shareholder pressure to boost performance, said a hedge fund led by Richard Breeden sent investors a 'misleading' message as part of his bid to gain seats on the company's board."

Bloomberg - "Fidelity, Franklin Hit as Real Estate Funds Lose $13 Billion" (8-16-07)

"Fidelity Investments, Franklin Resources Inc. and Kensington Investment Group Inc. are the biggest losers in a decline by U.S. real estate funds that wiped out $13 billion in the past three months. Property funds, the best performers in 2006, slumped 16 percent since May 14, the most of any category tracked by research firm Morningstar Inc. in Chicago. The $5.9 billion Fidelity Real Estate Investment Portfolio, the largest among the group, fell 19.7 percent. The $718 million Franklin Real Estate Securities Fund and the $500 million Kensington Strategic Realty Fund each dropped 20.3 percent, the most among actively managed property funds with more than $100 million in assets."

Forbes - "Countrywide Borrows $11.5B From 40 Banks" (8-16-07)

"The nation's largest mortgage lender borrowed $11.5 billion from a group of 40 banks to fund loans, in a move that shows just how deep the lending crisis has become. Countrywide Financial Corp. said Thursday it made the move amid a credit crunch that has driven a number of its smaller peers to bankruptcy. Shares opened down more than 12 percent."

Los Angeles Times - "Bay Area home sales drop 12%" (8-16-07)

"July home sales in a nine-county swath around San Francisco Bay dropped 12% from the same period last year, but median prices remain stable, a real estate research firm said Wednesday. In all, 7,423 new and resale homes were sold last month in Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma counties, DataQuick Information Systems said."