Yahoo - "Home Prices: Steepest Drop in 20 Years" (8-28-07)

"U.S. home prices fell 3.2 percent in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the research group said Tuesday. The decline in home prices around the nation shows no evidence of a market recovery anytime soon, one of the architects of the index said."

Reuters - "CIT Group closes mortgage unit, takes charge" (8-28-07)

"CIT Group Inc (CIT.N: Quote, Profile, Research), the consumer and commercial finance company, on Tuesday said it has closed its mortgage lending operations, the latest to abandon the sector amid difficult market conditions. The company said it will take a $35 million pretax charge in the third quarter for severance and exit costs. It said its loan collection and customer service activities are unaffected."

The Washington Post - "Ratings Firms Defend Assessment of Loan Securities" (8-28-07)

"For months, securities backed by risky mortgage loans have been in trouble. Now, the credit-rating agencies that once blessed those securities as safe investments are in trouble, too. The stock of Moody's Investors Service, one of the major raters, is down about 40 percent from its 52-week high on heavy trading. Members of Congress are calling for hearings and more oversight of the rating firms. And institutional investors and industry observers have blamed the agencies for being months late in downgrading a slew of residential-mortgage-backed securities that soon imploded, prompting hedge funds to collapse, foreign governments to intervene and mortgage firms to lay off tens of thousands."

Forbes - "Moody's to Review IndyMac Credit Rating" (8-28-07)

"Credit rating agency Moody's Investors Service said Tuesday it is reviewing IndyMac Bancorp Inc. and its thrift subsidiary IndyMac Bank FSB for a possible downgrade because of the company's exposure to the troubled mortgage market. IndyMac is one of the largest alt-A mortgage lenders in the nation. Alt-A mortgages are loans given to customers with minor credit problems or who are unable to fully document their income and assets like a traditional prime borrower."

Forbes - "Moody's Downgrades Fremont Credit Rating" (8-28-07)

"Credit rating agency Moody's Investors Service said Tuesday it downgraded Fremont General Corp.'s senior debt rating to 'Caa2' from 'B3,' due to low capital levels and increased uncertainty that Fremont can meet its obligations. A ratings downgrade generally means it would be more expensive for Fremont to borrow money."

Bloomberg - "Lehman, Bear Stearns, Citigroup Rating Cut by Merrill" (8-28-07)

"Lehman Brothers Holdings Inc., Bear Stearns Cos. and Citigroup Inc. were downgraded by Merrill Lynch & Co. stock analyst Guy Moszkowski because of looming losses on mortgage bonds and leveraged loans, as well as a slowdown in investment banking. Moszkowski, the top-ranked U.S. brokerage analyst in Institutional Investor magazine's survey of money managers, said in a note to clients that New York-based Lehman and Bear Stearns will be hurt because of their dependence on debt markets. He cut earnings estimates for the two securities firms, as well as for Citigroup and JPMorgan Chase & Co., the largest banks based in New York. All four stocks fell in trading today."

Los Angeles Times - "Wall Street slips on housing, growth worries" (8-28-07)

"Wall Street pulled back today, losing momentum from last week's gains after news that sales of existing homes slipped in July for a fifth straight month stirred concerns about the strength of the economy. Sales of existing homes slowed to their most sluggish pace in nearly five years, while home prices fell for a record 12th straight month. The National Association of Realtors reported that existing home sales slipped by 0.2 percent in July to a seasonally adjusted annual rate of 5.75 million units. Inventories rose 5.1 percent to a record 4.59 million units."

Real Estate Journal - "Desperate Home Sellers Try Unconventional Selling Tactics" (8-28-07)

"Tammy Winfield made every effort to depersonalize her home and keep it free of clutter. She even baked cookies before prospective buyers came in for a look, hoping that the homey scents would help persuade them to make an offer. Still, the Truckee, Calif., home that she and her husband, Bill, put on the market in September sat for months without any takers."