Housing industry suffers unpleasant surprises … and more

1. KB Home’s big losses part of a wave of unpleasant surprises hitting the housing industry [WSJ]
2. SL Green wants to sell its 39-story Herald Square building at 1250 Broadway for more than $350 million [Post]
3. Commercial rents rose in 2007, but demand drops [NYO]
4. Citigroup consolidates mortgage units [NYT]
5. Mayor’s commission studies alternate congestion pricing plans [NYDN]
6. Wilbur Gonzalez, 40 Mercer Street sales manager, sues Corcoran Group and the Sunshine Group, claiming he’s owed nearly $1 million in commission and a promised bonus [Sun]