Real Estate Journal - "Borrowers Find Help Only After Falling Behind on Mortgages" (11-6-07)

"Struggling homeowners seeking mortgage relief from their lenders say they are hearing a tough message: We can't help you unless you first fall behind on payments. That is putting borrowers in a bind, given that defaulting on a mortgage triggers all kinds of headaches. Consider Sharon Cooper of Lynn, Mass., who wants to sell her home. The problem: She now owes more than the house is worth, so she asked her lender to allow a 'short sale' -- selling it for less than the amount due, and forgiving the rest -- to avoid foreclosure."

Real Estate Journal - "Banks Fear Democrat Bids To Aid Mortgage Borrowers" (11-6-07)

"Some major U.S. banks are concerned an effort by Democrats to help mortgage borrowers avoid foreclosure could lead lawmakers to scale back tough bankruptcy overhauls adopted two years ago, when Republicans were in power. To help address defaults and foreclosures on subprime mortgages, lawmakers are pushing a bill that would allow bankruptcy judges to rework the terms and conditions of loans. Consumer groups have gotten behind the effort, and caught the ear of some Republicans from districts seeing mortgage problems."

CNN - "2008 outlook: Housing" (11-6-07)

"Although home prices nationwide are down 4.2 percent from a year ago, 'the worst is yet to come,' says Joshua Shapiro, chief U.S. economist at consulting firm Maria Fiorini Ramirez. Just how bad will it get? According to Fiserv Lending Solutions, the median home price nationwide is expected to tumble 5.7 percent next year, which would make it the worst year for real estate in at least 40 years."

Reuters - "Beazer cuts jobs, dividend, sees charges" (11-6-07)

"Beazer Homes USA Inc said on Monday said it cut 25 percent of its staff, would suspend its dividend and sees at least $230 million in noncash impairment charges in its fiscal fourth quarter. Beazer, the No. 7 U.S. home builder whose past lending practices are the subject of a federal investigation, has said that as a result of incorrect accounting it would restate prior results. As such, it cannot now report its financial results for the fourth quarter and fiscal year 2007."

Yahoo - "Hovnanian says net contracts and sales fall" (11-6-07)

"Orders and sales for new homes fell and cancellations rose at upscale U.S. home builder Hovnanian Enterprises Inc during the company's fiscal fourth quarter. The company said on Tuesday that the October sales pace in most of its markets 'significantly deteriorated' when compared with recent months and that set by its September promotional sale. Hovnanian's problems reflect the U.S. housing industry's protracted decline, as it was the first major builder to include October results in its preliminary accounts."

Yahoo - "IndyMac loss dwarfs own forecast" (11-6-07)

"IndyMac Bancorp Inc, one of the largest independent U.S. mortgage lenders, posted a quarterly loss on Tuesday that was more than five times larger than it had projected, hurt by mounting delinquencies and a collapse in demand to buy its home loans."

Bloomberg - "Citigroup SIVs Draw $7.6 Billion of Emergency Funds" (11-6-07)

"Citigroup Inc., the largest U.S. bank by assets, provided $7.6 billion of emergency financing to the seven structured investment vehicles it runs after they were unable to repay maturing debt. The SIVs drew on the $10 billion of so-called committed liquidity provided by Citigroup, according to a Securities and Exchange Commission filing yesterday. Shares fell to the lowest since 2003."

Reuters - "The $2.5 trillion bond insurance problem" (11-6-07)

"Bond insurance, a key safety net of the financial system, is looking vulnerable, raising the possibility of another round of forced sales, writedowns and contagion. Fitch Ratings said on Tuesday that it may cut the AAA ratings of bond insurers after an upcoming review of their exposure to complex collateralized debt obligations."

CNN - "Greenspan: Cut home inventories" (11-6-07)

"Former Federal Reserve Chairman Alan Greenspan said Tuesday that cutting excess home inventories in the United States is key to stabilize the financial system at home and the rest of the world. 'The critical issue on the whole subprime, and by extension, the international financial system rests very narrowly on getting rid of probably 200,000-300,000 excess units in inventory,' Greenspan told a business leaders' forum videoconference in Tokyo from Washington."

Reuters - "Fitch to release insurer capital adequacy scores" (11-6-07)

"Fitch Ratings on Tuesday plans to release capital adequacy scores for 99 U.S. life and nonlife insurers based on 2006 data that may impact future ratings, the rating company said. The insurance groups reviewed make up 76 percent of the total U.S. life insurance industry with $3.6 trillion of life industry assets."

Los Angeles Times - "Schwarzenegger orders plan for 10% budget cuts" (11-6-07)

"Gov. Arnold Schwarzenegger on Monday ordered all state departments to draft plans for deep spending cuts after receiving word that California's budget is plunging further into the red -- largely because of the troubled housing market."