Tucson's First Magnus closes doors abruptly

First Magnus Financial Corp. says it has stopped accepting mortgage loan applications and will not fund previously originated loans.

The privately held, Tucson, Ariz.-based Alt-A lender blamed an inability to sell its loans in the secondary market for the abrupt closure.

"In the light of the collapse of the secondary mortgage market, First Magnus will not fund any future mortgage loans and is no longer accepting any mortgage loan applications or funding any mortgage loans previously originated and not yet funded," the company said in a message posted on its Web site.  more...

Home construction slows to 10-year low

The rate of housing starts fell to the lowest level in a decade in July, falling an estimated 20.9 percent below the July 2006 rate, according U.S. Census Bureau and Department of Housing and Urban Development announced today.

The seasonally adjusted annual rate of building permits dropped an estimated 22.6 percent year-over-year in July and housing completions were down about 22.2 percent, the agencies also reported.  more...

Countrywide taps $11.5 billion credit line

Countrywide Financial Corp. has borrowed $11.5 billion from 40 of the world's largest banks and is speeding up plans to move its mortgage loan production over to its banking division, Countrywide Bank FSB.

The move -- announced a day after a Merrill Lynch analyst said the nation's largest lender could face bankruptcy if it's unable to obtain money to continue making loans -- was a response to liquidity shortages and a lack of demand for securities backed by non-agency mortgage loans, Countrywide officials said.  more...

NAR asks Fed to help curb abusive lending practices

It has been a busy letter-writing week for the National Association of Realtors.

The trade group for about 1.3 million Realtors announced Wednesday that it sent a letter urging the Federal Reserve System Board of Governors "to adopt regulations that combat unfair, deceptive and abuse mortgage lending acts and practices" in light of "the collapse of several investment funds and the failure of more than 100 subprime lenders."  more...

Mortgage rates end week higher

Long-term mortgage rates increased this week, Freddie Mac reported today in its weekly survey.

The 30-year fixed-rate mortgage rose to an average 6.62 percent from last week's 6.59 percent, and the 15-year fixed-rate mortgage gained to 6.3 percent from 6.25 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30-year loans and 0.5 on the 15-year loans.  more...