Mortgage Bankers Association - "U.S. Mortgage Borrowers Have Benefited From International Investment in Mortgage-Related Securities" (10-1-07)

"The large and continuing purchases of U.S. securities by foreign investors, primarily Asian investors, have had a powerful and beneficial impact on the U.S. housing market, according to a study released today by the Mortgage Bankers Association. The study, 'The Impact of Global Capital Flows and Foreign Financing on U.S. Mortgage and Treasury Interest Rates,' conducted by Ashok Bardhan and Dwight Jaffee of the University of California, Berkeley found that international demand for US debt had a material effect in lowering overall interest rates and that the Chinese demand for mortgage-related debt lowered US mortgage rates by approximately half of a percentage point."

Mortgage Bankers Association - "MBA Study Examines Fraud Committed Against Mortgage Lenders" (10-1-07)

"The Mortgage Bankers Association (MBA) today released Mortgage Fraud: Strengthening Federal and State Mortgage Fraud Prevention Efforts, the next in a series of policy papers designed to inform and shape the debate surrounding important issues affecting the real estate finance industry. This paper takes a comprehensive look at the policy discussion surrounding fraud against lenders, a critical issue in today’s mortgage market."

Reuters - "Long road to recovery for housing market: Greenspan" (10-1-07)

"The housing market has a long way to go before stabilizing after the subprime crisis, spelling bad news for consumers in the world's biggest economy, former Federal Reserve chief Alan Greenspan said on Monday. Greenspan, who has been outspoken throughout the credit crunch, said more house price declines were likely given a surfeit of supply but pointed to signs the lending crisis could be coming to end as demand for more risky assets grows."

CNBC - "Home 'Flippers' Get Burned Chasing Their Dream" (10-1-07)

"Zenie is one of a legion of a relatively new type of homeowner, a 'flipper,' who sought fast money by rapidly buying and selling homes to capture a profit on each as prices soared. Speculators who bought multiple homes like Zenie were once a boon to the U.S. economy when they pushed home prices to record levels over a five-year period. Now their unsold homes are the bane of a sickly housing market."

CNN - "Bankruptcy 'tweak' could save 600,000 homes" (10-1-07)

"One consumer group estimates that 600,000 foreclosures could be avoided over the next two years by making a simple change to the bankruptcy code. The Center for Responsible Lending (CRL) calls it a tweak, but it could be a significant change for homeowners and the market for mortgage-backed securities. CRL's proposal - reflected in a House bill recently introduced - would make changes to the regulations for Chapter 13 bankruptcies, which don't wipe out debts, but rather establish a repayment plan."

Bloomberg - "U.S. September ISM Manufacturing Index Falls to 52" (10-1-07)

"Manufacturing in the U.S. grew in September at the slowest pace in six months, raising concern the housing slump was hobbling other parts of the economy. The Institute for Supply Management's index of factory activity fell more than forecast to 52 from 52.9 in August. A reading over 50 signifies growth and the index averaged 53.9 in 2006."

SanLuisObispo.com - "August home, condo sales nosedive in Santa Barbara County; forecast gloomier for northern part of county" (10-1-07)

"August was a tough month for home sales in Santa Barbara County as problems in the mortgage industry took their toll. From the South Coast to the North County, sales fell almost 20 percent, but prices avoided a steep slide."

The San Diego Union Tribune - "Fate of world economy lies with U.S. housing-Greenspan" (10-1-07)

"The fate of the world economy hinges on what happens to house prices in America and that may not be a good thing, former Federal Reserve chairman Alan Greenspan said on Monday. Speaking at the Reuters headquarters in London, the former Fed chair delivered a gloomy prognosis on the state of the global economy – U.S. house prices are likely to fall further and they could drag the rest of the world with them."

CNN - "Citigroup Sees 3Q Earns Down 60 Percent" (10-1-07)

"Citigroup Inc. estimated Monday that its third-quarter profit will drop 60 percent, as the nation's largest bank took losses of more than $3 billion after writing down securities backed by underperforming mortgages and loans tied to corporate buyouts."

Bloomberg - "Pimco's Gross Says Housing Will Fixate Fed for Years" (10-1-07)

"Bill Gross, manager of the world's biggest bond fund, said falling home prices will be the main driver of U.S. monetary policy for 'several years,' and repeated his forecast the Federal Reserve will lower the federal funds rate to at least 3.75 percent in the coming 12 months."

Orange County Register - "O.C. office rents, vacancies spike" (10-1-07)

"A surge in office construction combined with sweeping layoffs at mortgage companies lead to both higher office vacancy and higher rents in O.C. in the third quarter, The county's office vacancy rate hit 10.53 percent at the end of last month, the highest in nearly three years, reports Voit Commercial Brokerage. In December 2004 it was 10.8 percent and its previous peak was 17.2 percent in March 2002, amid the last construction wave."