Paul Muolo had this insiders report from NMN. "Investment banking firms increasingly are buying notable stakes in publicly traded subprime firms. For instance, Deutsche Bank, until recently owned 7.2% in Accredited Home Lenders. It no longer owns all that stock in Accredited, though. What happened? Good question."

"Meanwhile, it appears subprime funders originated north of $720 billion in 2005, a record. If that number holds subprime now accounts for about 26% of all loans funded."

"Another earnings report and yet another disclosure about competition and pricing pressures. This time around it's NetBank. In its 2Q press release the mortgage lender disclosed that its conforming and nonconforming mortgage units reported pretax losses of $7 million and $10.8 million, respectively, noting, 'The decline in profitability within both channels was due mainly to competitive margin pressure, not production volumes.'"

"The Senate Finance Committee issued a statement saying its chairman, Sen. Chuck Grassley, R-Iowa, is reviewing whether government-chartered companies Fannie Mae and Freddie Mac may have abused the special tax status of their charitable foundations by using them 'and other charitable contributions to skirt' campaign-finance and lobbying laws."

And the sell-off continues for Novastar Financial Inc.