by Calculated Risk on 3/13/2007 02:18:00 PM

From MarketWatch: New foreclosures at record high

Many more U.S. homeowners were unable to keep up with their mortgage payments in the fourth quarter, the Mortgage Bankers Association said Tuesday, with the rate of homes entering the foreclosure process hitting a record 0.54% and the delinquency rate on U.S. home loans leaping to 4.95% from 4.67% three months earlier.
...
The rise was led by subprime mortgages, where delinquencies increased to 13.33% from 12.56%, and FHA loans, which saw a record-high delinquency rate of 13.46%. Trouble in subprime mortgages, made to borrowers with the riskiest credit, has roiled lenders and the stock market in recent days.

by Calculated Risk on 3/13/2007 10:03:00 AM

The National Retail Federation reports: Cold Weather, Slow Housing Market Lead to Lackluster February

According to the National Retail Federation (NRF), retail industry sales for February (which exclude automobiles, gas stations, and restaurants) rose 2.7 percent unadjusted over last year and declined 0.5 percent seasonally adjusted from January.

February retail sales released today by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.1 percent from January and increased 3.4 percent unadjusted year-over-year.

"Retailers continue to feel the backlash of the sluggish economy," said NRF Chief Economist Rosalind Wells. "Winter weather and the slowing housing market put a dent in what could have been a solid February for many retailers."

At least the NRF isn't just blaming the weather.

by Calculated Risk on 3/13/2007 08:40:00 AM

Press Release: Accredited Pursuing Strategic Options

Accredited Home Lenders Holding Co. (NASDAQ:LEND - News; "Accredited" or "Company") announced today that it is currently exploring various strategic options, including raising additional capital to enhance liquidity and provide the Company with the flexibility to retain or sell originated loans based on an assessment of the best overall return. Accredited's available cash resources have been affected primarily by margin calls under its warehouse and repurchase facilities since January 1, 2007, all of which have been met to date, as well as ongoing loan repurchases. The Company reported that it has paid approximately $190 million in margin calls on its facilities since January 1, 2007. Approximately two-thirds of those margin calls have been received and paid since February 15, 2007.

In addition, Accredited is seeking waivers and extensions of waivers of certain financial and operating covenants under its warehouse and repurchase facilities, including waivers relating to required levels of net income. The Company has been operating under various waivers under these facilities since December 31, 2006. There can be no assurance that the Company will be successful in receiving any of the required waivers.

Accredited also reported that it is pursuing certain cost restructuring initiatives, including further workforce reductions.

The Company continues to evaluate impairment of the goodwill established in its acquisition of Aames Investment Corporation ("Aames") in the fourth quarter of 2006. In light of this evaluation, along with work that must be completed for the Company's year-end audit, it is unlikely that the Company will file its Annual Report on Form 10-K by March 16, 2007 as previously contemplated in its Notification of Late Filing on Form 12b-25 filed with the Securities and Exchange Commission on March 1, 2007.

by Calculated Risk on 3/13/2007 08:32:00 AM

From the Census Bureau:

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for February, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $370.5 billion, an increase of 0.1 percent from the previous month and up 3.2 percent from February 2006. Total sales for the December 2006 through February 2007 were up 3.7 percent from the same period a year ago. The December 2006 to January 2007 percent change was unrevised from 0.0 percent.

From MarketWatch: U.S. retail sales rise 0.1% in February on cars, gas

U.S. retail sales stayed soft in February, rising just 0.1% after no gain in January, the Commerce Department reported Tuesday. Sales were led by a solid 0.9% rise in auto sales and a 1.2% rise in gasoline station sales, which was boosted by higher prices at the pump. Sales were weaker than Wall Street's expectations for 0.2% gains for both overall sales and for sales excluding autos. Sales elsewhere were weak. Sales excluding autos fell 0.1%, the first decline since October. And excluding both cars and gasoline sales, retail sales fell 0.3%, the largest decline since April 2004.

by Calculated Risk on 3/13/2007 01:10:00 AM

Manpower, Inc. reports: Outlook Survey Finds Hint of Restraint in U.S. Hiring Plans for the Second Quarter

"A look at the last three quarters of survey data suggests that employers are shifting into neutral when it comes to hiring," said Jeffrey A. Joerres, Chairman & CEO of Manpower Inc. "Companies expect to coast through the next three months without much growth in the way of staff. It is a subtle change that may not yet be perceived in the job market, however it is a break from the three plus years of nearly unchanged hiring plans."