Several readers posted on lending standards. "I would like to hear opinions on the impact of the eternally 'upcoming' tightening of the Fed lending standards. What are the key new stardards/rules, will they actually be enforced, and most importantly, could this be the nail in the coffin?"

One replied, "They are doing it slow. Kind of like a heroin addict going to a methadone clinic. You don’t want to see an entire culture of FBs go cold turkey."

Another said, "Sales are plummeting at mortgage companies. They’re not about to turn away any deal that walks through the door, no matter how stupid or risky. As long as the seconday market keeps buying the risky loans, they’ll still be selling them. The only thing that will tighten the market is for Fannie, Freddie, and the like to tighten."

One asked about the securities. "Will the foreign investors holding our loans have anything to say about the delay in the tightening of lending standards?"

The Rocky Mountain News. "Colorado continues to bear the unwelcome distinction of having the highest foreclosure rate in the nation, according to a national report. 'I would think we would have had to be leading the nation for at least a year, maybe two years,' said Ed Jalowsky, (who) sells many homes in some stage of foreclosure."

"'The sad part is that it is not letting up, and it is not going to let up,' he added. 'It's only going to get worse.'"

"Jalowsky and others say that lax lending standards have contributed to the large number of foreclosures. Lenders are now tightening their criteria."

"For example, lenders are making it more difficult for several low-income families to pool money to buy homes and for people with bad credit records to get loans, according to brokers. Also, it is becoming more difficult for buyers to avoid paying down payments through gift programs."

"Those changes are good long-term, Jalowsky said, because they were among the primary reasons the foreclosure rate is so high."

"But short-term, it means there will be fewer entry-level buyers at a time when the supply of unsold homes in the Denver area is at record levels, Jalowsky said. 'The market is getting squeezed from both sides now,' he said."

"Economist Patty Silverstein said said rising interest rates are hammering some people who locked in adjustable-rate mortgages and interest only loans and now are seeing their monthly payments rising by hundreds of dollars. 'A lot of people took advantage of record-low interest rates by getting into the housing market before they were ready or buying too much house,' Silverstein said."