More housing bubble news from Wall Street. "Paris G. Reece III, MDC's CFO, said, 'Almost all of our markets experienced higher home order cancellations, contributing to lower net home orders per active subdivision in every market except Utah, which has continued to show strength."

"Similar to the last three quarterly periods, net home orders received in the 2006 first quarter were lower year-over-year in Arizona. The increase in cancellations in this market, as well as in Florida and Virginia, was driven in part by what appears to be the exit of speculators from these markets, along with other factors related to higher mortgage interest rates."

"'In addition, an increased supply of homes available to be purchased in these three markets, as well as in Colorado, resulted in an elevated number of order cancellations from prospective homebuyers who were unable to sell their existing homes in a more competitive sales environment.' MDC's subsidiaries build homes under the name 'Richmond American Homes.'"

"Home builder Ryland Group Inc. reported better-than-expected quarterly earnings on Thursday, but new orders fell sharply and the company cut its outlook. Ryland said new orders in the first quarter fell 21 percent from a year earlier, to 4,021."

"'People are unable to sell their existing homes for what they thought they might, and are unable to go through with their anticipated purchase of their new home,' said analyst Rick Murray. 'So, they end up canceling their contract.'"

The Reno Gazette Journal. "Investors say they are stunned, angry and frustrated at Las Vegas-based USA Capital, a short-term mortgage lender that filed for bankruptcy protection last week. It's the latest in a series of private lenders who have failed in Las Vegas, including Harley Harmon Mortgage, Interstate Mortgage Group and Global Express Capital."

"'Unbelievable,' investor Rich Maiorana, who invested $50,000 in a USA Capital fund. The bankruptcy filing 'just makes them look to be terribly dishonest,' Maiorana said. Phyllis Resler, a widow and great-grandmother has $56,000 invested with USA Capital. 'Help,' she said, laughing nervously. 'I can't earn and replace what I have at age 69. That will take a lifetime.'"

"Lenard Schwartzer, an attorney for USA Capital, told bankruptcy Judge Linda Riegle on Monday that the company continued making distributions to all of its 3,600 investors even though many borrowers stopped paying interest on their loans."

From Origination News. "Nearly 2,000 banks and thrifts, 22% of all such institutions, have construction loans on their books that exceed 100% of total capital, and 24 banks have concentrations that exceed 500% of capital, according to A.M. Best & Co. The insurance rating agency also reported that banks in the Southeast have the highest concentrations of construction loans."

"Over 50% of Georgia and Florida banks have construction loans that exceed total capital, while nine banks in Georgia and three in Florida have construction loans that exceed 500% of capital, the company said. 'These two states, which had the highest numbers of banks exceeding the 100%, accounted for nearly 18% of the 1,956 banks with construction lending concentrations,' the rating agency said."