NAR - "Pending Home Sales Rise, Wider Gains Anticipated as Buyers tap Housing Provisions" (8-7-08)

"Some improvement is projected for existing-home sales in the months ahead, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently passed housing stimulus bill, according to the latest forecast by the National Association of Realtors®. The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in June, rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent below June 2007 when it stood at 101.4."

NAR - "REALTORS® Report Foreigners Come to America to Buy Homes" (8-7-08)

"This new research indicates that international buying activity in the U.S. is widespread. NAR estimates that between 150,000 and 190,000 homes were sold to foreign nationals from May 2007 to May 2008. Recent foreign buyers purchased properties in every state and the District of Columbia. The most popular states where international buyers purchased homes are Florida, California and Texas. Arizona, New York, Washington and Nevada were also popular."

Yahoo - "June pending home sales up unexpectedly" (8-7-08)

"Home sales contracts signed in June unexpectedly rose, boosting an index of pending sales to the highest level since October, though it was well below the year-ago level, a real estate trade group said on Thursday. The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in June, was up 5.3 percent to 89.0 from a downwardly revised 84.5 in May."

Inman News - "Study: Fewer Realtors work with foreign buyers" (8-7-08)

"The survey of 4,000 Realtors found that about 26 percent of participants worked with at least one foreign client from May 2007 to May 2008, down from 32 percent in the previous survey, conducted from April 2006 to April 2007."

Bloomberg - "Highest Home Supply Since '82 Seen Needing 50% Cut" (8-7-08)

"Hovnanian Enterprises Inc., New Jersey's largest homebuilder, cut the number of unsold houses by more than 50 percent over the past two years after lowering prices and still had 1,500 on its books as of April."

Bloomberg - "U.S. Economy: Pending Home Resales Climbed in June" (8-7-08)

"U.S. pending sales of previously owned homes unexpectedly rose in June as buyers swept up foreclosed and lower-priced properties. The index of pending home resales rose 5.3 percent after a revised 4.9 percent decline in May, the National Association of Realtors said today in Washington. Other reports showed claims for jobless benefits jumped last week to a six-year high and consumer borrowing surged in June."

Bloomberg - "IndyMac Seized, First Priority Closed: Bank Failure Scorecard" (8-7-08)

"The table below tracks some of the recent failures among U.S. banks, savings and loans and credit unions. More than a dozen lenders have been closed by state or national regulators since 2007 as U.S. mortgage markets collapsed and the world's largest financial companies wrote down more than $495 billion in losses."

Bloomberg - "PMI Has Record Drop After Loss on Mortgage Claims" (8-7-08)

"PMI fell 82 cents to $2.68 at 4:18 p.m. in New York Stock Exchange composite trading. The second-quarter net loss was $246.3 million, or $3.03 a share, compared with profit of $83.8 million, or 95 cents, a year earlier, the Walnut Creek, California-based company said today in a statement."

Orange County Register - "Foreclosure refugees skipping apartments" (8-7-08)

"NMHC says apartment industry data show only 2% to 6% of all apartment applicants were seeking to rent after running into trouble with their mortgage. In fact, only 23.5% of apartment applicants have ever even had a mortgage, according to First Advantage SafeRent, which does apartment applicant screening. Only 5.4% of those with previous mortgages had ever been 90 days behind or defaulted."

Orange County Register - "Wachovia sees O.C. home prices dropping 20%" (8-7-08)

"Wachovia, one of the largest financial firms in America, estimates some Orange County homes will drop 20% more in value, after already losing 12%. Wachovia didn’t give an exact time line. The company, during its July 22 earnings presentation, estimated losses on loans that allow borrowers to choose their monthly payment, including one that means owing more to the bank. Having been burned, it no longer makes that loan."

Bloomberg - "Fed Wisely Chose to Avoid Making Risky Choice" (8-6-08)

"Cutting the Federal Open Market Committee's 2 percent overnight lending rate target might have stimulated weak economic growth, at the risk of making inflation worse. Increasing the target in an effort to bring down inflation might have made the credit conditions plaguing the economy even tighter, undermining what growth there is."

Bloomberg - "Ambac, Using an Accounting Change, Posts Net Income" (8-6-08)

"Ambac Financial Group Inc., the bond insurer that lost 92 percent of its stock market value in the past year, posted second-quarter net income after using an accounting change to record a $5.2 billion gain related to its debt securities."

Bloomberg - "Freddie Posts Loss, Cuts Dividend as Slump Deepens" (8-6-08)

"Freddie Mac, the U.S. mortgage-finance company hobbled by record foreclosures, slashed its dividend at least 80 percent after posting a quarterly loss that was three times wider than analysts' estimates."

Yahoo - "Morgan Stanley to freeze home-equity credit lines: report" (8-6-08)

"Morgan Stanley (NYSE:MS - News) told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation. Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified."

Bloomberg - "Lender Says Bill May Increase Reverse Mortgages" (8-6-08)

"David Peskin, chief executive officer of the Senior Lending Network, the Melville, New York-based lender that specializes in reverse mortgages, said he expects the new comprehensive housing bill to spark interest in the loans."

Bloomberg - "Investcorp Real Estate Unit Buys $210 Million Loans at Discount" (8-6-08)

"The U.S. unit of Bahrain's Investcorp Bank BSC said it bought six mezzanine loans with a face value of $210 million at a discount from banks trying to clear their books of assets tainted by the subprime mortgage crisis."

Bloomberg - "U.S. MBA's Mortgage Applications Index Climbed 2.8% Last Week" (8-6-08)

"Mortgage applications in the U.S. climbed last week from a seven-year low as more Americans sought to refinance out of adjustable-rate loans. The Mortgage Bankers Association's index of applications to buy a home or refinance a loan rose 2.8 percent to 432.6 in the week ended Aug. 1 from the prior week, when it reached the lowest level since December 2000. The group's refinancing gauge also improved from a seven-year low."

Orange County Register - "Sublet glut hits office rents" (8-6-08)

"As sublet office space pours onto the O.C. market, landlords are having a tougher time getting asking rents for direct space, says Studley Inc.’s latest report. The real estate services company, which represents office tenants, says the county had 2.4 million square feet of office space on the market in the second quarter. The overall asking rent countywide fell to $31.13 per square foot , 3.8% lower than the same period last year. It was the second quarter in a row rents were down"

The Press Enterprise - "UC Irvine real estate study blames mortgage crisis on home loan limits" (8-4-08)

"During the years that Fannie Mae and Freddie Mac were responsible for the majority of mortgages issued, the study found that the increase in home prices was driven by economic factors like income, employment and job growth. By contrast, the study said after the pullback of the two government-sponsored enterprises from the mortgage market, the amount of mortgages issued exploded and the rise in home prices outpaced economic growth, creating a bubble."

Yahoo - "Fed likely to hold rates steady amid crosscurrents" (8-4-08)

"Bernanke and his central bank colleagues are faced with dueling problems: weak economic growth and advancing inflation. To treat one risks aggravating the other. So the Fed is widely expected when it meets Tuesday to leave a key interest rate alone."

CBIA - "CBIA Thanks Governor for Quickly Signing Another Crucial Industry Recovery Bill" (8-4-08)

"California homebuilders today thanked Governor Arnold Schwarzenegger and the Legislature for enacting the last piece of CBIA’s three-part homebuilding stimulus package launched in January to help provide some relief to the battered homebuilding industry."

The Washington Post - "Housing Collapse Ahead?" (8-4-08)

"Turmoil in the housing market has led to fears that home prices will drop precipitously, particularly if foreclosures force large numbers of homes onto the market in the coming year. Recently, these fears have driven financial stocks down and led to the government rescue of Fannie Mae and Freddie Mac. But the projected losses have been wildly exaggerated. Most Americans have not experienced any significant decline in the value of their homes -- nor are they likely to."

CNN - "Time to lock in your mortgage rate" (8-4-08)

"today the mortgage market is very volatile, and rates are trending upwards. So losing out on a good deal may mean it's gone forever. If buyers see a bargain, say experts, they should pounce."

Bloomberg - "Fewest Treasury Traders Since 1960 Hit Taxpayers" (8-4-08)

"For the first time since 1960, when it created the network of securities firms obligated to buy and sell Treasury bonds, the U.S. government has the fewest bond traders making markets in its debt and a bigger burden for American taxpayers financing record federal deficits."

Bloomberg - "Citigroup Posts Loss on Credit-Card Securitizations" (8-4-08)

"The biggest U.S. credit-card lender lost $176 million in the second quarter packaging card loans into securities, the company said in an Aug. 1 regulatory filing. The New York-based bank completed fewer deals and was forced to mark down its own $9 billion stockpile of the debt instruments and other stakes the company amassed while selling them to investors."

Bloomberg - "WCI Files for Chapter 11 Protection, Starkey to Leave" (8-4-08)

"WCI Communities Inc., the homebuilder whose chairman is billionaire investor Carl Icahn, plans to file for Chapter 11 bankruptcy protection after failing to obtain new financing and losing 90 percent of its value in the past year."

Bloomberg - "U.S. Spending Rises; Prices Jump the Most Since 2005" (8-4-08)

"The biggest increase in prices in almost three years eroded consumers' buying power in June, diminishing the boost from the government's tax rebates."

Orange County Register - "Federal regulator issues harsh warning to Irvine bank" (8-4-08)

"The agency that protects consumer deposits at banks said Friday it issued cease-and-desist orders against five banks in June, including MetroPacific Bank of Irvine. MetroPacific has agreed to comply with the order, but did not admit wrongdoing, according to the Federal Deposit Insurance Corporation."

Orange County Register - "LA/OC prices down 23.8%, per square foot" (8-4-08)

"RadarLogic’s newest house-value survey says LA/OC home prices were falling at 23.8% annual pace, when measured by price-per-square foot in May. That latest reading — a steep drop to $302 per square foot — compares to a drop of just 0.7% in the previous 12-month period."

Orange County Register - "25% of O.C. homebuyers grab a foreclosure" (8-4-08)

"One-in-four homes resales in Orange County in the second quarter — OK, 25.1% — were residences that had been involved in a foreclosure in the previous 12 months."

Chase Suspends Non-Conforming Mortgages

Mish's Global Economic Trend Analysis - "Chase Suspends Non-Conforming Mortgages" (8-2-08)

"Chase stops doing all jumbo arms AND fixed products with their wholesale lending business. This is what US Bank should have done instead of their ridiculous requirement of $250000 in liquid assets. US Bank is essentially saying that they don't want to do this type of product, but the important point is there are still more restrictions being placed on mortgage lending"

Bloomberg - "Treasuries Post Biggest Gain Since June as U.S. Economy Slows" (8-2-08)

"Treasuries posted the biggest weekly gains since June as government reports showed the economy slowing and employment falling, adding to expectations that the Federal Reserve won't raise interest rates this year."

New York Post - "THE FEDS HAVE COME UP WITH AN EXIT TAX!" (8-3-08)

"HERE'S a Yankee Doodle Doozy of an idea from the taxman: if you've had enough of the United States and choose to renounce your citizenship, you will now have to give up a large chunk of your assets. The same new tax also will hit foreigners who are living and working in this country legally - with a so-called green card - once they decide to return home."

The San Diego Union Tribune - "Buyer beware: Market's tight and down payments are back" (8-3-08)

"The chief advantage of a down payment today is simply that it allows a person to qualify for a loan, since very few so-called “zero-down” loan programs still exist. Yet down payments have other benefits, too. The more money you put down to buy a home, the smaller your monthly payments will be, explains Greg Gwizdz, national sales manager at Wells Fargo Home Mortgage in Des Moines, Iowa."

The San Diego Union Tribune - "Know when housing bill tax credit is due to expire" (8-3-08)

"Anybody who's been sitting on the sidelines hesitant to jump into real estate until conditions settle down should know these dates: April 9, 2008, through June 30, 2009. They mark the eligibility time span to qualify for the home purchase tax credit created by the massive housing bill approved by Congress. If you have not owned a house during the past three years – or are considering buying your first home – and can go to closing before the end of next June, you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person)."

The New York Times - "IndyMac Files for Bankruptcy Protection" (8-1-08)

"IndyMac Bancorp, the third-largest banking failure in United States history, said Friday that it had filed for bankruptcy protection, less than three weeks after being seized by federal regulators following a bank run by depositors."

USA Today - "Paulson: Housing remains biggest threat to economy" (8-1-08)

"Paulson said the economy needs to work through adjustments in housing and credit markets, which have been roiled by huge losses on mortgage loans, for the country to 'return to stronger growth next year and beyond.'"

Inman News - "Mercury Cos. exits three states" (8-1-08)

"Mercury Companies Inc. is closing down its title and escrow subsidiaries in California, Texas and Arizona, after the Colorado-based company was denied additional credit by lenders."

Bloomberg - "Merrill `Co-Opted' Analysts Backed Auction-Rate Debt" (8-1-08)

"Four days before Merrill Lynch & Co. stopped supporting the auction-rate securities market and left thousands of individual investors stuck with securities they couldn't sell, the firm's analysts recommended clients buy."

Bloomberg - "U.S. Economy: Unemployment Rate Increases to Four-Year High" (8-1-08)

"Payrolls fell by 51,000, less than forecast, the Labor Department said today in Washington. The jobless rate rose to 5.7 percent, from 5.5 percent the prior month. As recently as April, it was 5 percent. A separate report showed that manufacturing stagnated in July as companies were hit by rising raw-materials costs and slower spending."

New York Post - "LEHMAN SHOPPING MORTGAGE SECURITIES" (8-1-08)

"Lehman is engaged in talks with prospective buyers about offloading some $30 billion in commercial mortgage assets and other hard-to-value securities that have dogged its balance sheet for months and ultimately resulted in the demotion of Chief Financial Officer Erin Callan and President Joseph Gregory."

Herald Tribune - "Tapping home equity? Good luck" (8-1-08)

"Some banks, including giants Bank of America, Wachovia and Washington Mutual, are notifying customers that their home equity credit lines have been reduced or cut off because of dropping property values."

Newsday.com - "Beating the bust: Where housing sales prices rose" (8-1-08)

"Good real estate news seems hard to come by these days, as industry analysts wax on about subprime mortgage losses, the credit crunch and foreclosures on the rise. But on Long Island, there have been glimmers of hope in the first half of 2008."

Orange County Register - "Commercial late payments triple in California - to 0.06% of loans" (8-1-08)

"The rate of delinquent loans on commercial properties in California tripled in the quarter ending June 30, a survey by the California Mortgage Bankers Assn. says — climbing to 0.06 percent of outstanding loans."

Realty Times - "Inflation Concerns Ease As Do Mortgage Rates" (8-1-08)

"Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.52 percent with an average 0.7 point for the week ending July 31, 2008, down from last week when it averaged 6.63 percent. Last year at this time, the 30-year FRM averaged 6.68 percent."

Bloomberg - "California's Discount Foreclosure Sales Point to Housing Bottom" (7-31-08)

This article features Bruce Norris

"In Stockton, the U.S. metro area with the highest foreclosure rate, home sales more than doubled in the second quarter after prices fell by an average 37 percent, said PMZ Real Estate Corp., the area's largest broker. Across the state, sales rose for three consecutive months starting in April after 30 straight months of declines, the California Association of Realtors said. About 40 percent of those transactions were foreclosure sales, DataQuick Information Systems reported."

CNN - "Foreclosures linked to subprime fraud" (7-31-08)

"Mortgage scammers took advantage of loopholes in New York State lending laws to defraud homeowners and lending institutions all over the state, according to a new report released Thursday. The New York State Commission of Investigations reported that the state's mortgage borrowers need more regulatory protection from predatory lenders. It also linked subprime loans closely to New York's growing foreclosure problem; in 2007, 59% of all foreclosures statewide involved subprime loans."

CNN - "Freddie aims to slow foreclosures" (7-31-08)

"Freddie Mac is doubling the amount of money it pays loan servicers for each successful mortgage workout among other measures to keep struggling borrowers out of foreclosure, it said Thursday. The mortgage financier is also giving more time to negotiate workouts in states with fast foreclosure processes and will reimburse servicers for door-to-door outreach."

CNN - "Mortgage rates drop as oil eases" (7-31-08)

"Mortgage rates fell slightly this week according to a weekly report released Wednesday, as lower oil prices briefly ease fears of price inflation."

Bloomberg - "U.S. Recession May Have Begun in Last Quarter of 2007" (7-31-080)

"The U.S. economy may have slipped into a recession in the last three months of 2007 as consumer spending slowed more than previously estimated and the housing slump worsened, revised government figures indicated. The world's largest economy contracted at a 0.2 percent annual pace in the fourth quarter of last year compared with a previously reported 0.6 percent gain, the Commerce Department said today in Washington. Growth for the period from 2005 through 2007 was also trimmed."


Bloomberg - "Bear Stearns Demise Proves Premature as 'Ace' Stays" (7-31-08)0

"Bear Stearns, previously the fifth-largest U.S. securities firm, had more than 500 retail brokers under its last chief executive officer, 58-year-old Alan Schwartz, whom JPMorgan said today will leave the firm. The wealth management division booked $830 million of revenue in 2007, 14 percent of the firm's total. JPMorgan didn't have a retail brokerage prior to the purchase, and Jes Staley, 51, who runs the bank's asset management unit, said in December that he wasn't interested in running such a business."

Bloomberg - "Paulson Says Stimulus to Ensure 2nd-Half U.S. Growth" (7-31-08)

"Treasury Secretary Henry Paulson said he expects the government's fiscal stimulus plan will boost economic growth in the second half of the year, offsetting a housing downturn and high energy prices."

Bloomberg - "Merrill Defrauded Auction-Rate Investors, State Says" (7-31-08)

"Merrill Lynch & Co. was accused by Massachusetts Secretary of State William Galvin of misleading investors about the stability of the auction-rate market at the same time the investment bank was marketing the securities."

NAHB - "President Bush Signs Landmark Housing Bill Into Law" (7-30-08)

"Landmark housing legislation signed into law today by President Bush is aimed at ending the current cyclical downturn in the housing industry, helping home buyers and strapped borrowers and strengthening the housing finance system, according to the National Association of Home Builders (NAHB)."

Mortgage Bankers Association - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (7-30-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 25, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 420.8, a decrease of 14.1 percent on a seasonally adjusted basis from 489.6 one week earlier. On an unadjusted basis, the Index decreased 13.7 percent compared with the previous week and was down 30.3 percent compared with the same week one year earlier."

North County Times - "HOUSING: Price decline reaches new record" (7-30-08)

"San Diego County house prices fell by the largest margin yet, tumbling 23 percent from a year ago, according to a report released Tuesday. Though annual declines reached a new peak, the rate of depreciation slowed significantly, reported the Standard & Poor's Case-Shiller Home Price Index."

Yahoo - "The Hidden Tax Traps in the Housing-Rescue Bill" (7-30-08)

"from a tax perspective, the bill is likely to cause more upset than calm. Here is a look at five areas where tax law was changed along with housing law, and the good news and bad news that goes along with each"

Yahoo - "The Private Mortgage Industry's Role in the Current Crisis" (7-30-08)

"Lenders and investment bankers drastically relaxed their underwriting standards in response to the euphoria associated with rapidly rising home prices during 2000-2006. They approved loans that could not possibly be repaid without an indefinite continuation of house price inflation."

Yahoo - "Fed takes steps to break through credit clogs" (7-30-08)

"Focused on getting the nation's credit gears smoothly working again, the Federal Reserve is letting Wall Street firms draw emergency loans into next year and giving financial companies more options to help them overcome credit problems."

Bloomberg - "LandAmerica Plunges After Loss, Slashing Dividend" (7-30-08)

"The loss was $3.29 per share, four times worse than the average estimate of three analysts surveyed by Bloomberg. That compared with profit of $7.9 million, or 42 cents a share, a year earlier, the Richmond, Virginia-based insurer said late yesterday."

Bloomberg - "CB Richard, Jones Lang Fall as Tight Credit Cuts Net" (7-30-08)

"CB Richard Ellis Group Inc. and Jones Lang LaSalle Inc., the world's largest commercial real-estate brokers, plunged after announcing lower profits they blamed on tight credit reducing property sales and leasing."

Bloomberg - "General Growth's 2nd-Quarter Net Rises on Store Rents" (7-30-08)

"General Growth Properties Inc., the second-largest U.S. owner of shopping malls, said second-quarter earnings increased as the company raised store rents. "

Bloomberg - "Centex May Cut Dividend as Housing Slump Continues" (7-30-08)

"Centex Corp. may cut its dividend to conserve cash as the U.S. housing slump continues, Chief Executive Officer Tim Eller said after the country's fourth-largest homebuilder posted its fifth straight quarterly loss."

Orange County Register - "O.C. upper-end sellers cut prices back to January level" (7-30-08)

"HousingTracker’s final July numbers show upper-end O.C. sellers pulling back pricing to where they were at the year’s start. The upper half, measured as the 75th percentile or the median of the top half, dropped pricing for the second consecutive month to $799,000 – just a few dollars away from January’s recent low. (That’s red line on graph. Click on it for bigger version!) Pricing in this half had risen four straight months to $844,725 before reversing. From this month to July ‘07, sellers in the upper half have dropped prices 11.1%."

NAHB - "Home Builders Applaud New IRS Regulations On Utility Allowances For LIHTC Properties" (7-29-08)

"Calling it a victory for affordable housing, the National Association of Home Builders (NAHB) today applauded new regulations issued by the Internal Revenue Service (IRS) that give Low Income Housing Tax Credit (LIHTC) property owners more flexibility in the way they calculate utility allowances for their low-income residents."

The Wall Street Journal - "Amid Housing Slump, Glut Eases Slightly" (7-29-08)

"The number of homes on the market is finally falling in much of the U.S., but tight credit and a flood of foreclosures are still pushing home prices down. Making things worse, a sputtering economy is destroying jobs. That means even more foreclosures and fewer potential home buyers."

Bloomberg - "U.S. Economy: House Prices Drop, Confidence Near Low" (7-29-08)

"Home prices in 20 U.S. metropolitan areas fell at a faster pace in May, and consumer confidence stayed this month near the lowest level since 1992, posing a threat to household spending."

Realty Times - "Market Conditions" (7-29-08)

"The Economic Stimulus Act of 2008 allowed FHA to raise its loan limits from $362,790 to $729,750 in some areas of the country. While the increase is only temporary and will expire December 31, 2008, it has had a major impact. In the four months since Ginnie Mae rolled out this new product, issuers have securitized $17 million in April, $331 million in May, $1.089 billion in June, and $1.470 billion in July of FHA's jumbo loans."

Inman News - "Housing still unaffordable" (7-29-08)

"At last measure in 2006, 39 million households were at least moderately cost-burdened (paying more than 30 percent of income on housing) and nearly 18 million were severely cost-burdened (paying more than 50 percent). From 2001-06, the number of severely burdened households alone surged by almost 4 million. Because of the unprecedented run-up in house prices and lack of real income growth, over half of this increase was among homeowners."

Mortgage Bankers Association - "Second Half 2007 Mortgage Originations Show Preference for Fixed Rate Products Over Adjustable Rate Products" (7-29-08)

"The demand for fixed rate mortgage products increased in the second half of 2007 according to the Mortgage Bankers Association's (MBA) Mortgage Originations Survey released today. This demand was largely due to a substantial decline in long term interest rates and the narrowed spread between the adjustable rate mortgage (ARM) and fixed mortgage rates. Tightened lending standards for subprime and nontraditional loans, where ARM loans were historically more popular, also reduced ARM originations."

Yahoo - "Merrill Writedowns Could Be Watershed For Banks" (7-29-08)

"Merrill Lynch's latest effort to shed its subprime debt could set the standard for a final round of writedowns in the financial sector. The battered Wall Street titan's move to sell its collateralized debt obligations (CDOs) at 22 cents on the dollar was viewed by some market leaders as a watershed moment in the billions of writedowns related to bad bets on high-risk mortgages."

Yahoo - "S&P: Home prices drop by record 15.8 pct. in May" (7-29-08)

"Home prices tumbled by the steepest rate ever in May, according to a closely watched housing index released Tuesday, as the housing slump deepened nationwide. The Standard & Poor's/Case-Shiller 20-city index dropped by 15.8 percent in May compared with a year ago, a record decline since its inception in 2000. The 10-city index plunged 16.9 percent, its biggest decline in its 21-year history."

Orange County Register - "Builders shave $430,000 off new O.C. house prices" (7-29-08)

"The latest figures show May’s contracts for all new home types fell 37% vs. May 2007, declining to 174 units. The steepest decline was for condos, which fell 44% to 46 units. House contracts were down 35% to 85, and contracts to buy townhomes or buildings of one to four units (duplexes, triplexes, etc.) fell 34% to 43."

CNN - "How housing rescue bill can help you" (7-28-08)

"The Senate on Saturday passed a $300 billion housing rescue bill aimed at helping troubled homeowners avoid foreclosure and supporting mortgage giants Fannie Mae and Freddie Mac.
President Bush is likely to sign the bill into law within days. After the law kicks in on Oct. 1, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA)."

USA Today - "Housing rescue bill may fall short; who benefits?" (7-28-08)

"Is it a remedy for the worst housing slump the nation has suffered in decades? Or merely a taxpayer-funded bailout that will fail to reverse the plunge in home prices, the surge in foreclosures and the grave threat that overhangs the economy?"

Bloomberg - "Mortgage Debt Least of Bad Bets as Investing Sinks" (7-28-08)

"The fastest inflation in 17 years and a fourth straight quarter of U.S. profit declines are turning debt sold by Fannie Mae and Freddie Mac into the favorites of the world's biggest bond investors. Pacific Investment Management Co., T. Rowe Price Group Inc., RiverSource Institutional Advisors and U.S. Bancorp's FAF Advisors, which oversee more than $1 trillion, say the government's decision to stand behind the beleaguered U.S. housing finance companies and their yields compared with Treasuries make the bonds a buy. The Senate approved legislation on July 26 allowing the U.S. to inject capital into Fannie and Freddie. President George W. Bush plans to sign it into law."

CNN - "Bonds rise after bank shutdowns" (7-28-08)

"Treasury prices rose Monday after the government shutdown of two local banks on Friday sparked further worries about the strength of the U.S. financial sector. The benchmark 10-year note rose 21/32 to 98 27/32, and its yield fell to 4.03% from 4.09% late Friday. Bond prices and yields move in opposite directions."

Bloomberg - "IMF Says End of U.S. Housing Slump `Not Visible'" (7-28-08)

"The International Monetary Fund said there's no end in sight to the U.S. housing recession and warned that deteriorating credit conditions for consumers and banks may prolong a period of slow economic growth. "

Realty Times - "Market Conditions" (7-28-08)

"In the most recent report from the National Association of Realtors, stats shows that existing homes sales fell another 2.6 percent in June. They are now 15.5 percent lower than June of 2007."

The San Diego Union Tribune - "Buy and hold now, or just quit and fold?" (7-27-08)

"Because these market cycles can be rather brief, 'you can miss out on most of the gains' if you're out of stocks and holding cash for the first few months of each new bull cycle, Roge said."

The San Diego Union Tribune - "Renters make their move" (7-27-08)

"The housing market decline that has triggered a wave of foreclosures and deeply eroded recent home equity gains is also opening the door to ownership for renters who can meet tightening lending standards."

Yahoo - "Homeowner rescue awaits President Bush's signature" (7-27-08)

"Congress approved mortgage relief for 400,000 struggling homeowners Saturday as part of an election-year housing plan that also aims to calm jittery financial markets and bolster the sagging economy. President Bush said he would sign it promptly, despite reservations."

Yahoo - "When Pessimism Prevails, It's Time to Get Rich" (7-27-08)

"Am I optimistic for the long-term? Absolutely not. I still believe we're due for the mother of all market crashes, and that the U.S. economy is running on borrowed time -- and I do mean borrowed. I think most baby boomers are in serious financial trouble, and that oil will climb above $200 a barrel. Inflation will also increase, causing more pain for the poor and middle class"

I Survived Real Estate 2008 panel is finally complete and the event is over 50% full. The panel now consists of Tommy Williams (President of the National Auctioneers Association), Rick Sharga (VP Marketing for RealtyTrac), Richard Lambros (CEO of the Builders Industry Association of Southern California), Annemaria Allen (The Compliance Group), Christopher Thornberg (Principal at Beacon Economics), Philip Tirone (President of the 7 Steps to 720 Credit Score), and Bruce Norris (Moderator and President of The Norris Group). Please visit www.ISurvived2008.com to find out how you can attend for free and help us raise money for Komen for the Cure.

NAR - "Existing-Home Sales Down In June" (7-24-08)

"Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 2.6 percent to a seasonally adjusted annual rate1 of 4.86 million units in June from a pace of 4.99 million in May, and are 15.5 percent lower than the 5.75 million-unit rate in June 2007."

Yahoo - "House OKs rescue for homeowners, Freddie, Fannie" (7-24-08)

"Rescue legislation sailed through the House on Wednesday aimed at helping 400,000 strapped homeowners avoid foreclosure and preventing the collapse of troubled mortgage companies Fannie Mae and Freddie Mac. The 272-152 vote reflected a congressional push to send election-year help to struggling borrowers and to reassure jittery financial markets about the health of two pillars of the mortgage market."

Los Angeles Times - "Mortgage woes hit Downey Savings & Loan" (7-24-08)

"Downey's portfolio is laden with the kinds of risky mortgage loans that helped trigger the collapse of Countrywide Financial Corp. of Calabasas and IndyMac Bank of Pasadena. Investors have turned on the bank, sending shares of parent company Downey Financial Corp. down 91% this year. The stock rose 21 cents Wednesday to $2.73."

Yahoo - "Pimco: $1 trillion housing losses seen" (7-24-08)

"The best way to help the ailing housing market recover from the $1 trillion of losses it faces will be to cut the cost of mortgages via the housing bill and rescue package for mortgage finance giants, the manager of the world's biggest bond fund said on Thursday."

CNN - "Grand jury investigates subprime lenders" (7-24-08)

"A federal grand jury is investigating subprime mortgage lenders Countrywide Financial Corp., New Century Financial Corp. and IndyMac Federal Bank, a person familiar with the situation told The Associated Press on Thursday. Subpoenas seeking documents have been issued to all three companies, according to the person, who was not authorized to speak publicly about the case and requested anonymity."

CNN - "How housing rescue bill can help you" (7-24-08)

"The House on Wednesday passed a $300 billion housing rescue bill aimed at helping troubled homeowners avoid foreclosure and supporting mortgage giants Fannie Mae and Freddie Mac. If the bill is now passed by the Senate and signed by President Bush, who today withdrew his threat to veto it, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA)."

CNN - "Mortgage rates rise again" (7-24-08)

"Rates on 30-year mortgages rose for the third consecutive week amid concerns about mounting inflation, the weak housing market and speculation that the Federal Reserve will hike interest rates soon. Mortgage finance firm Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.63% this week. That's up from 6.26% last week but still below the 6.69% average a year ago."

Bloomberg - "UBS Faces New York Lawsuit Over Auction-Rate Sales" (7-24-08)

"UBS AG was sued today by New York Attorney General Andrew Cuomo, alleging the Zurich-based bank's promotion of auction-rate securities as safe, money market-like investments was fraudulent. Cuomo seeks to force UBS to offer to buy back at face value $25 billion in auction-rate securities held by the bank's customers in New York and nationwide. Massachusetts and Texas have filed similar complaints against UBS since the $330 billion market collapsed in February in an effort to force the firm to repurchase securities it marketed in their respective states."

Bloomberg - "Fed Weighs Plans to Spur Bank Investment by LBO Firms" (7-24-08)

"The Federal Reserve, looking to spur investment in lenders hit by credit-market losses, is weighing three measures to ease rules for private-equity funds that buy bank stakes, people with knowledge of the deliberations said."

Orange County Register - "Inland Empire house construction down nearly 90% from ‘05" (7-24-08)

"The California Building Industry Association reports that some of the biggest homebuilding declines occurred just east of here in Riverside and San Bernardino counties, once one of the fastest growing areas in the nation."

Check out Joel Singer, Executive Vice President of the California Association of Realtors, on the Norris Group Real Estate Radio this weekend as we prepare for the I Survived Real Estate 2008 event August 23rd.

SFGate.com - "State agency will lend to 1st-time home buyers" (7-22-08)

"A California agency is offering below-market-rate loans to first-time home buyers who purchase certain foreclosed properties in beleaguered areas, including parts of Alameda and Contra Costa counties. The California Housing Finance Agency, which helps finance home ownership for people of modest means, has received a $200 million allocation of bond funds to use for the Community Stabilization Home Loan Program, which it estimates will help 800 to 1,000 Californians purchase their first home. The program is available only for specific foreclosed properties owned by one of the institutions participating in the program. The participating lenders - Wells Fargo, HomeEq, CitiMortgage and Fannie Mae - have agreed to price the properties at 12 percent below market value. CalHFA said other lenders are likely to join the program."

CBIA - "Housing Starts Continue Downward Trend in June, CBIA Announces" (7-22-08)

"According to statistics compiled by the Construction Industry Research Board, homebuilders around the state obtained 6,443 building permits during June, down 10.8 percent from May and down 43.9 percent from June 2007. Single-family permits totaled 3,954, up 9.2 percent from May but down 54.9 percent from June 2007, while multifamily permits totaled 2,489, down 30.9 percent from May and 16.8 percent from June 2007."

DQNews - "Another Increase in California Foreclosure Activity" (7-22-08)

"Mortgage servicers recorded 121,341 'notices of default' during the April-through-June period. That was up 6.6 percent from a revised 113,809 for this year's first quarter, and up 124.9 percent from 53,943 in second-quarter 2007, according to DataQuick Information Systems."

Bloomberg - "Fannie, Freddie Rescue May Cost $25 Billion, CBO Says" (7-22-08)

"Fannie Mae and Freddie Mac would cost U.S. taxpayers an estimated $25 billion over two years under a Bush administration plan to rescue the mortgage-finance companies, the Congressional Budget Office said. While the assessment is more pessimistic than Treasury Secretary Henry Paulson's prediction that a bailout is unlikely, the CBO report may quell concerns among some lawmakers that the price tag would be higher."

Bloomberg - "NVR Says Second-Quarter Net Income Dropped 43 Percent" (7-22-08)

"Net income decreased to $51.3 million, or $8.64 a share, from $90.7 million, or $14.14, a year earlier, the Reston, Virginia- based company said today in a statement. The results exceeded the average estimate of $6.85 a share in a Bloomberg survey of analysts. Shares rose as much as 7.1 percent. "

Orange County Register - "O.C. can’t keep fines for unlicensed real estate agents" (7-22-08)

"Orange County is unable to take advantage of a new law that lets counties keep a portion of the fines levied against people caught working as real estate agents without a license because it’s one of the few metropolitan counties in the state to resist setting up special fraud prosecution units and trust funds. The new law, signed Monday by Gov. Arnold Schwarzenegger, is designed to beef up weak enforcement of real estate license laws."

Orange County Register - "Rents go flat at O.C.’s 3-bedroom townhomes" (7-22-08)

"RealFacts‘ second-quarter O.C. rent report shows that the average asking rents are typically rising the least for the bigger units at Orange County’s larger apartment complexes"

Bloomberg - "Bank of America Advances After Profit Beats Estimates" (7-21-08)

"Second-quarter net income at Bank of America, the biggest U.S. consumer bank, declined 41 percent to $3.41 billion, or 72 cents a share, exceeding the 54-cent average estimate of analysts surveyed by Bloomberg. Revenue was a record $20.6 billion and Chief Executive Officer Kenneth Lewis said there are no plans to cut the dividend."

Bloomberg - "Bill Gross Says Fannie Mae, Freddie Mac Mortgages `Excellent'" (7-21-08)

"Eight of the top 10 holdings in Gross's $128.8 billion Total Return Fund were mortgage-backed securities guaranteed by Fannie Mae, according to data compiled by Bloomberg News as of March 31, the latest date for which figures are available. Mortgage securities made up 61 percent of the fund as of June 30, up from 53 percent a year earlier, according to Pimco's Web site."

Bloomberg - "Paulson Pushes Covered Bonds, Sidestepping Congress" (7-21-08)

"Treasury Secretary Henry Paulson, aiming to create a new source of U.S. mortgage financing, wants banks to start issuing covered bonds without waiting for legislation from Congress. Regulators can provide the guidance that lenders are asking to be set in law, said a Treasury official working on the issue who declined to be identified. Banks want a standardized definition of a covered bond, which requires the lender to make good on payments if homeowners default, and guidelines on bondholder protections."

Bloomberg - "Freddie Mac May Slow Purchases of Mortgages, Bonds" (7-21-08)

"Freddie Mac, the second-largest U.S. mortgage-finance company, may cut purchases of home loans from banks and bonds backed by housing debt to shore up its capital amid record delinquencies. The government-sponsored company is also considering selling securities and reducing its dividend while it prepares to issue $5.5 billion of stock, McLean, Virginia-based Freddie Mac said in a July 18 filing with the U.S. Securities and Exchange Commission. JPMorgan Chase & Co. analyst Matthew Jozoff said in a report last week that growth in mortgage holdings of Freddie Mac and the larger Fannie Mae will be 'weak.'"

Bloomberg - "AIG, Chubb Among Insurers of Executives Facing Losses'" (7-21-08)

"American International Group Inc., Chubb Corp. and other insurers may lose money on coverage of U.S. corporate boards for the first year since at least 2002 as investors burned by subprime losses open more lawsuits."

Mercury News - "Homebuilders, schools at odds" (7-21-08)

"Either the Silicon Valley economy will grind to a halt, or thousands of students will be bused to overcrowded schools. In a dispute over San Jose's largest expansion of housing since its redeveloped downtown, two sparring public bodies predict looming disaster if the other has its way. The city of San Jose hopes to build 32,000 units of housing and add 83,000 jobs in the North San Jose area, extending along North First Street toward Alviso. But the Santa Clara Unified School District says it must accommodate the new families - and needs a way to fund at least three new schools."

Orange County Register - "June sees worst O.C. construction job loss in 15 years" (7-21-08)

"While O.C. construction bosses added 700 workers from May to June, total employment in this sector is off 6,100 people in a year — a 5.8% drop that’s the biggest tumble since 1993. (By the way, from 1990 to 2007, June’s typical one-month construction job surge is 1,600 workers, so even this year’s one-month gain isn’t great news!)"

Bloomberg - "Stern Says Fed Shouldn't Wait for End of Crisis to Raise Rates" (7-19-08)

"The Federal Reserve shouldn't wait for housing and financial markets to stabilize before it begins raising interest rates, central bank policy maker Gary Stern said."

Orange County Register - "How to fix this mess"(7-19-08)

"Although the foreclosure news in Orange County was a little better in June than May, it was still bad news and may get worse. According to RealtyTrac, more than 2,430 notices of default were filed in June – the first step towards foreclosure – down slightly from May, when one thousand county homes went into actual foreclosure, a record high. Chapman University just reported that California’s economy, including Orange County, may be in recession and certainly a factor is the collapse of the housing industry fueled by the subprime crisis and resulting home foreclosures."

The San Diego Union Tribune - "16% office vacancy rates seen in county" (7-19-08)

"San Diego County's office market continued to soften in the second quarter, with vacancy rates reaching 16.1 percent, thanks to tepid demand and new construction adding to supply."

Reuters - "House prices could fall for two years: Citigroup" (7-19-08)

"Citigroup chairman Win Bischoff has warned that house prices in Britain and the United States are likely to keep falling for another two years."

McClatchy - "Housing prices haven't hit bottom yet" (7-20-08)

"The Bush administration's pledge to rescue ailing housing finance giants Fannie Mae and Freddie Mac raises anew questions about just when the nation's dismal housing market will hit bottom. Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson have suggested over the past year that an end is in sight. But with each prediction, things have grown worse. For many homeowners, the deep housing slump feels like a drop off a skyscraper. Every time another 15 floors have passed, there seems to be more room to fall."

The New York Times - "Uncomfortable Answers to Questions on the Economy" (7-20-08)

"The economy is not in recession until a panel at a private institution called the National Bureau of Economic Research says so. Unofficially, many economists think a recession started six or seven months ago, even as the economy has continued to expand — albeit at a tepid pace."

DQNews - "California June 2008 Home Sales" (7-18-08)

"A total of 35,202 new and resale houses and condos were sold statewide last month. That was up 6.6 percent from 33,024 in May and down 8.1 percent from 38,291 for June last year. Last month's total made for the slowest June in DataQuick's statistics, which go back to 1988."

The Wall Street Journal - "Mortgage Giant Freddie Mac Considers Major Stock Sale" (7-18-08)

"Mortgage giant Freddie Mac -- emboldened by emergency regulatory actions that have triggered a two-day rebound in its battered stock -- is considering raising capital by selling as much as $10 billion in new shares to investors, according to people familiar with the matter."

Mercury News - "Silicon Valley home prices slide to 2005 level" (7-18-08)

"It's a real estate milepost that would have sounded unbelievable just a year ago: One-fifth of the houses for sale in Santa Clara County today are now priced at less than $450,000.
And the median price of houses that changed hands last month fell from $791,000 last year to $670,000. The last time that figure was so low was in March 2005."

Yahoo - "Citigroup posts $2.5B loss, but beats expectations" (7-18-08)

"Citigroup has become the latest big bank to assuage Wall Street's worries about the financial sector, posting a $2.5 billion second-quarter loss that was smaller than the market expected."

Bloomberg - "KeyCorp Swoons on Loan Losses Outside Its Market" (7-18-08)

"Three months ago, analysts were speculating KeyCorp would help rescue National City Corp. after its bigger Cleveland-based neighbor set aside $1.4 billion to cover bad loans and reported a $171 million first-quarter loss. Since then, KeyCorp has fallen more than 60 percent in New York trading and analysts now estimate Ohio's third-biggest bank by assets will post a record second-quarter loss of about $800 million because of unprofitable real estate projects in Florida and California."

Bloomberg - "Blackstone Risks Hedge Fund Returns as LBO Loans Fade" (7-18-08)

"Blackstone can't wait for banks, stuck with almost $100 billion of debt from earlier LBOs, to start lending again. Instead, it's pushing deeper into deal financing with GSO. The strategy may hurt the hedge-fund unit's returns -- some approaching 40 percent -- if slowing economies lead companies taken private by Blackstone to default on their debt."

Bloomberg - "Fannie, Freddie Cut Lobbying Budget, Rely on Allies in Congress" (7-18-08)

"Fannie Mae and Freddie Mac, for years among the most formidable lobbying forces in corporate America, have seen their political influence decline along with their financial fortunes.
Four years ago, Freddie Mac and Fannie Mae spent a combined $26 million on lobbying. This year they likely will spend about half that. Fannie Mae also has eliminated its foundation, which made politically motivated donations. The two government- chartered mortgage companies rely more on allies, including home builders and realtors, to make their case in Washington."

Bloomberg - "Bank of America Faces High Bar After Citigroup Report" (7-18-08)

"Bank of America Corp., the biggest U.S. home lender after buying Countrywide Financial Corp., reports earnings next week amid concern the purchase will add to losses on credit-card and home-equity loans. Bank of America is likely to say on July 21 that second- quarter per-share profit fell 59 percent, according to estimates of 21 analysts compiled by Bloomberg. A year earlier, the Charlotte, North Carolina-based bank earned $5.76 billion, the best quarter in the company's history."

NAHB - "Dynamic Programs Better Than Mandates, NAHB Says" (7-17-08)

"'significant increases in costs for efficiency upgrades and the additional increase in home price to accommodate them has the potential to harm the part of the market with the least flexibility to react to price constraints: the marginal first-time home buyer,' Belcher said. 'NAHB does not support the assertion that a broad public policy objective should be achieved on the backs of a relatively narrow segment of the market with limited resources.'"

NAHB - "Single-Family Housing Starts And Permits Decline In June" (7-17-08)

"Starts of new single-family homes declined 5.3 percent to a seasonally adjusted annual rate of 647,000 units in June. This was the slowest pace in 17 years, and marked a decline of 64.5 percent from the peak of the building boom in January of 2006. Meanwhile, issuance of building permits for single-family homes declined 3.5 percent to a rate of 613,000 units."

Los Angeles Times - "Bargain hunting picks up as Southern California home values fall further" (7-17-08)

"Southern California home values keep spiraling down, but sales volume is picking up in the Inland Empire and other areas where bargain hunters are snapping up foreclosed properties at steep discounts.Home prices plunged 29.3% last month from a year earlier, to a median of $355,000 in six Southern California counties, a real estate information service reported Wednesday. That's about where prices were in 2004."

Yahoo - "Bernanke: Fannie, Freddie in no danger of failing" (7-17-08)

"The Fed and the Treasury Department on Sunday came to the rescue of mortgage giants Fannie Mae and Freddie Mac, offering to throw them a financial lifeline. The two companies hold or guarantee more than $5 trillion in mortgages — almost half of the nation's total_ and are major sources of financing for the mortgage market. The Bush administration is asking Congress to temporarily increase lines of credit to Fannie and Freddie and to let the government buy their stock. The Fed has offered to let the companies draw emergency loans."

DQNews - "Bay Area median price dives below $500K; sales near record low" (7-17-08)

"The median has fallen on a year-over-year basis for seven consecutive months, the result of both widespread depreciation, most pronounced inland, and a shift of sales towards lower-priced markets. The region's four most expensive counties -- Marin, San Francisco, San Mateo and Santa Clara -- accounted for a combined 42 percent of Bay Area sales last month, down from 49 percent in June 2007."

Orange County Register - "O.C. office construction plummets 91%" (7-17-08)

"Voit Commercial Brokerage reports that construction of O.C. office buildings plunged 90.8% in the second quarter to 325,276 square feet. Last year in the second quarter, 3.5 million square feet was under construction."

Orange County Register - "Jerry Brown says Countrywide used “shocking”deceptive lending practices" (7-17-08)

"Jerry Brown, California’s attorney general, has added new accusations to a law suit against Countrywide Financial, alleging the lender’s deceptive business practices included ignoring its internal underwriting guidelines and rewarding employees for selling risky home loans."

Bloomberg - "U.S. West Apartment Rents Increased 2.5% in the Second Quarter" (7-17-08)

"The average monthly rent in 15 U.S. states, most of which are in the West, climbed 0.6 percent from the first quarter to $999, Novato, California-based RealFacts said today in a statement. The average occupancy rate dropped from a year earlier in 22 metropolitan areas tracked by RealFacts, rose in seven and was unchanged in two."

Realty Times - "Real Estate Outlook: New Home Loan Applications Up" (7-17-08)

"With all the stock market jitters about Fannie Mae, Freddie Mac and the U.S. mortgage system, you might have the impression that the real estate market is on the edge of some sort of cliff. But that's wrong: Would you believe that new home loan applications jumped by a seasonally-adjusted seven and a half percent last week, according to the Mortgage Bankers of America's national survey! Applications to purchase homes using FHA loans surged by nearly 20 percent."

NAHB - "Builder Confidence Declines Further In July" (7-16-08)

"Builder confidence in the market for newly built single-family homes fell for a third consecutive month in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI fell below its previous record low of 18 in June to a new record low of 16 in July, with each of its three component indexes also hitting record lows."

The Wall Street Journal - "IndyMac Reopens, Halts Foreclosures on Its Loans" (7-16-08)

"IndyMac Bancorp Inc., the failed thrift, reopened its doors under federal control Monday and promptly moved to toss ailing homeowners a lifeline by halting all foreclosures on the mortgages it owns."

DQNews - "Southland home sales drag along bottom" (7-16-08)

"A total of 17,424 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 3.0 percent from 16,917 the previous month and down 13.6 percent from 20,166 for June a year ago, according to DataQuick Information Systems."

Mortgage Bankers Association - "Mortgage Applications Increase In Latest MBA Weekly Survey" (7-16-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 11, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 522.2, an increase of 1.7 percent on a seasonally adjusted basis from 513.4 one week earlier. On an unadjusted basis, the Index increased 27.0 percent compared with the previous Independence Day holiday shortened week and was down 17.4 percent compared with the same week one year earlier."

Yahoo - "Bernanke tries to settle nerves over economy,banks" (7-16-08)

"Trying to stem eroding investor confidence in the two companies, the Treasury Department and the Fed on Sunday offered to throw them a financial lifeline if they needed it to stay afloat. The two companies hold or guarantee more than $5 trillion in mortgages -- almost half of the nation's total -- and are major sources of financing for the mortgage market."

USA Today - "Economic pain: 'Payback' for debt-fueled growth?" (7-16-08)

"If it wasn't clear before Tuesday, it is now: This is no ordinary economic crisis, and it won't be over anytime soon. In fact, problems are multiplying. A year ago, the financial virus seemed confined to subprime mortgages, loans given to those with less-than-perfect credit. Now, much of the banking system appears rickety, and the U.S. economy has slowed to a crawl. But thanks to robust demand from still-growing countries such as China, the prices of commodities from oil to food have soared — hitting Americans from the gas pump to the grocery checkout."

The San Diego Union Tribune - "Lawmakers question Fannie/Freddie plan" (7-16-08)

"The criticism prompted House leaders to push back their timetable for approving emergency housing legislation, saying final action would take at least until early next week. A growing number of Republicans had voiced skepticism and, in some cases, opposition, to the administration's proposal to help the two companies, Fannie Mae and Freddie Mac."

The San Diego Union Tribune - "Inflation, Bernanke's warning rub salt in economy's wounds" (7-16-08)

"The U.S. economic downturn gained steam yesterday, with a report of the highest inflation since the early 1980s and a suggestion by the Federal Reserve chief that worse days are ahead."

Bloomberg - "Record Mortgage Insurer Claims Haven't Reached Peak, Fitch Says" (7-16-08)

"MGIC Investment Corp., PMI Group Inc. and competing U.S. mortgage insurers reeling from record claims may have to absorb even higher loss rates from bad home loans, Fitch Ratings said. About 70 percent of the industry's policies cover loans issued from 2005 through 2007 when mortgage and insurance underwriting standards were lax, leading to progressively higher default rates, Fitch said. Mortgage insurers pay lenders when borrowers default and foreclosure fails to recoup costs."

Bloomberg - "U.S. Office, Retail Building to Drop Through 2009, Study Says" (7-16-08)

"Construction of U.S. office and retail buildings is poised to fall for the rest of this year and through 2009 on lower demand from tenants, stricter lending standards and rising building costs, the American Institute of Architects said. Office-building construction likely will drop 3.7 percent this year and 12.3 percent in 2009, the Washington-based group said today in its semi-annual Consensus Construction Forecast. Construction of shopping centers and other retail buildings is forecast to fall 8.3 percent this year and 9.9 percent next year."

New York Times - "Scramble Led to Rescue Plan on Mortgages" (7-15-08)

"Treasury Secretary Henry M. Paulson Jr. and other top officials were warned, after Fannie and Freddie lost nearly half their stock market value on Friday morning, that any more turmoil threatened to reduce the value of trillions of dollars of the companies’ debt and other obligations, which are held by thousands of domestic and foreign banks, pension funds, mutual funds and other investors, government officials said. The warnings of a potential systemic failure led to the resulting rescue package, and one of the most striking — though unspoken — regulatory shifts in modern times."

CBIA - "Declining New-Home Sales Emphasizes Need for Action, CBIA Declares" (7-15-08)

"The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report showed that new home sales in May were 51 percent below May 2007. The drop represents a worsening in the trend of year-over-year decline, which had shrunk to 44 percent in April after coming in at 49 percent in March."

Bloomberg - "Insurer Writedowns Linked to Subprime Reach $77 Billion: Table" (7-15-08)

"The following table shows $77.6 billion of assets marked down by some of the largest insurers since the beginning of 2007 as values fell in U.S. mortgage and credit markets."

Bloomberg - "SEC Targets Lenders, Investment Banks in Subprime Investigation" (7-15-08)

"U.S. Securities and Exchange Commission Chairman Christopher Cox said the agency is pursuing more than four dozen cases into the subprime-mortgage crisis, focusing on whether lenders and investment banks misled investors."

Bloomberg - "Ackman Shorts Fannie, Freddie, Suggests Restructuring" (7-15-08)

"Hedge fund manager William Ackman, who is betting against shares of Fannie Mae and Freddie Mac, criticized any government plan to buy equity in the existing mortgage-finance companies and said shareholders should be wiped out. Ackman, 42, has his own plan that would see Fannie Mae raise about $86 billion in capital by giving investors in $750 billion of senior unsecured notes 90 cents on the dollar in debt of a new company, with the balance in equity. Investors in Fannie Mae's $11 billion of junior debt would get warrants, while common and preferred shareholders would get nothing, according to Ackman."

Bloomberg - "Fitch Ratings Lowers New Home Sales Forecast as Slump Persists" (7-15-08)

"Fitch Ratings Inc. lowered its forecast for new home sales this year as stricter mortgage lending standards reduce demand."

Bloomberg - "Safeco Gains Most Since April After Buyout Affirmed" (7-15-08)

"Safeco Corp., the property insurer that agreed in April to be acquired by Liberty Mutual Group Inc., rose the most since the deal was announced after Liberty Mutual reaffirmed its commitment to complete the $6.2 billion buyout."

Orange County Register - "Will the Fed’s new rules prevent another housing bubble?" (7-15-08)

"If these rules had been in place when we first knew that we needed them, the whole subprime crisis could have been averted. For a couple of years before the subprime market melted down, the widespread attitude in the subprime industry was that there was little reason to check whether borrowers could repay, because housing prices were always going to go up and everyone was going to make money even if the borrower had to sell the house. Prudent underwriting went out the window and there was a feeding frenzy by lenders and investors."

Orange County Register - "4 of O.C.’s 7 biggest cities lose population" (7-15-08)

"If population growth supposedly drives a healthy housing market, then recent stats from the Census Bureau — population growth for municipalities with 100,000-plus folks — shows another challenge for local real estate: Census says four of O.C.’s seven largest cities lost population in the year ended July, 1 2007. "

NAR - "REALTORS® Pledge Support to Finalize Housing Stimulus Bill" (7-14-08)

"The U.S. Senate has passed a bipartisan housing stimulus bill that 'is a big step toward helping people buy and keep their homes,' said National Association of Realtors® President Dick Gaylord. The Senate action moves a housing stimulus package closer to law, which would help bring stability to the housing market and stop the rising rate of foreclosures."

San Francisco Chronicle - "Fed adopts plan to curb shady mortgage practices" (7-14-08)

"For risky borrowers, the new rules will bar lenders from making loans without proof of a borrower's income. The rules will require lenders to make sure risky borrowers set aside money to pay for taxes and insurance."

Mortgage Bankers Association - "MBA's Quinn Reacts to Release of Final HOEPA Rule" (7-14-08)

"MBA applauds the Federal Reserve for stepping up to the plate and providing consumers with comprehensive rules to guide lenders and protect consumers in the mortgage process. These rules are a thoughtful effort to tackle difficult concerns and attempt to balance the need for new standards against the need for available, relatively low cost mortgage credit."

Bloomberg - "Citigroup's $1.1 Trillion of Mysterious Assets Shadows Earnings" (7-14-08)

"At an investor presentation in May, Citigroup Inc. Chief Executive Officer Vikram Pandit said shrinking the bank's $2.2 trillion balance sheet, the biggest in the U.S., was a cornerstone of his turnaround plan. Nowhere mentioned in the accompanying 66-page handout were the additional $1.1 trillion of assets that New York-based Citigroup keeps off its books: trusts to sell mortgage-backed securities, financing vehicles to issue short-term debt and collateralized debt obligations, or CDOs, to repackage bonds."

Orange County Register - "Irvine called 4th best place to live in U.S." (7-14-08)

"Long before developers embraced the idea of mixed-use communities, there was Irvine. It was born in the 1960s, when the University of California commissioned architect William Pereira to design a new campus and town. Today, its population hovers around 200,000, yet it feels much smaller thanks to its tight-knit neighborhoods and more than 16,000 acres of green space."

Orange County Register - "Demand for O.C. homes off 11% in 2 weeks" (7-14-08)

"Fresh math from Steve Thomas at Re/Max Real Estate Services in Aliso Viejo suggests that O.C.’s recent homebuying surge has taken, at least, an early summer vacation. His measure of demand — new escrows to buy local residences opened in the past 30 days — fell 11% just in the past two weeks."