AP - SMALLER LOSS: KB Home trimmed its fiscal second-quarter loss from a year ago, when the homebuilder recorded nearly $50 million in charges related to land and other assets. It didn’t book any such charges this time.

AP - The homebuyer tax credit party is over and the hangover may be just beginning.

AP - Freddie Mac said Friday that one of its executive vice presidents was fired this week.

Reuters - KB Home , the fifth-largest U.S. homebuilder, reported a wider-than-expected quarterly loss on Friday as pressure on home prices offset the company’s first rise in home deliveries in three and a half years.

AP - In a June 23 story about a new policy from Fannie Mae regarding homeowners who walk away from mortgages, The Associated Press erroneously gave two conflicting prices for Fannie Mae stock. The company’s stock closed trading Wednesday at 41 cents, down 1 cent, not unchanged at 48 cents. That was the closing stock price for fellow government-sponsored mortgage buyer Freddie Mac.

AP - Lennar Corp. said Thursday it bounced back from a year-ago loss in its fiscal second quarter, but the end of federal homebuyer tax credits hurt the homebuilder’s new home orders and contributed to a 9 percent drop in revenue.

AP - Morgan Stanley has agreed to a $102 million settlement following an investigation into subprime mortgage lending in Massachusetts.

Reuters - Morgan Stanley has agreed to pay $102 million to settle an investigation in Massachusetts into the investment bank’s subprime lending practices, a source familiar with the matter said on Thursday.

U.S.

AP - General Motors Co. is looking to boost auto sales by lining up banks and other financial institutions to make loans and lease deals for buyers with poor credit.