How a bank fell victim to loan fraud (Los Angeles Times)
Officials allege a scam used phony appraisals and paperwork to wring millions from deals in the Beverly Hills area. Kathy Moore's loan application sailed through the mortgage desk at Lehman Bros. Bank, and little wonder.

Federal Home Loan Bank of San Francisco Releases November 2007 Cost of Funds Index (Business Wire via Yahoo! Finance)
SAN FRANCISCO----The Federal Home Loan Bank of San Francisco announced December 31, 2007, that the 11th District Monthly Weighted Average Cost of Funds Index for November 2007 is 4.172%.

Immigration taking prominent role in '08 elections (North County Times)
When voters pick a presidential candidate in Iowa this week, in California next month and nationwide in November, immigration reform will be among their top concerns, analysts and advocates on both sides of the immigration debate say.

Related ushers in whole new ball game (Snowmass Village Sun)
After Smith and Alex Paninides joined forces with John Sarpa’s Centurion Group to develop the Residences at the Little Nell, Jeff Klein contacted Smith. Klein was another real estate developer Smith had met from his China Peak days in central California, and his dad was a friend of Alex Paninides.

Economy Suffering, Voters Tell Pollsters (KCRA 3 Sacramento)
A new Field Poll says half the state's voters think the California economy is in bad shape.

Rain Showers Ease Wildfire Conditions (WJLA-TV Washington D.C.)
Firefighters battled stubborn wildfires across Southern California on Saturday, but scattered showers brought a welcome improvement in conditions.

Authorities Make 227 DUI Arrests In Bay Area (KTVU 2 San Francisco)
SAN FRANCISCO -- Bay Area California Highway Patrol Officers arrested 227 drunken drivers between 6 p.m. Friday and 6 a.m. Tuesday during the agency's New Year's Maximum Enforcement Period, according to officials.

Seeking honest home values (Los Angeles Times)
Tougher state rules for appraisers take effect today, but inflated appraisals will remain a problem, an expert says. Starting today, the educational requirements for California home appraisers will be tougher, but a veteran property evaluator who teaches how to spot fraud says the rules won't alter how many appraisers do their jobs.

Sub-prime problem not as big as made out to be (Business Standard India)
As the US savings and loan crisis worsened in the 1980s, analysts tried to top each other’s estimates of the debacle’s cost to the federal government.

31 states introducing new laws (USA Today)
New laws for 2008 inspired by some hot-button issues of 2007 take effect this week, including an airline passenger bill of rights, mortgage restrictions, environmental safeguards, illegal-immigration constraints and bans on the risky uses of technology while driving.