Newsday reports from New York. "Sen. Charles Schumer, who heads the Senate banking subcommittee on housing, told an audience in Massapequa yesterday that he and others in Washington are working on legislation to regulate mortgage brokers for the first time and to end loans offer based on false promises."

"'It's despicable what some of these brokers will do,' Schumer said after recounting a story of an ailing Queens man who refinanced his home on a broker's promise of a $1,400-a-month payment that changed to $4,000 a month after less than a year."

"'There are about eight houses in a two-block area with 'for sale' signs on them, and while I don't know how many of them will end up in foreclosure, that's the most I've seen at this time of year since I've lived here. And there was a foreclosure around the corner about two years ago,' said Tina Diamond, a civic leader and school board member."

"Schumer said a recent study shows that many single-family homes on Long Island could lose more than $4,000 in value when a house within an eighth of a mile, or one city block, is foreclosed on."

"'It's crystal clear that the scope of the financial damage caused by skyrocketing foreclosures . . . [is] infecting entire neighborhoods on Long Island by depreciating property values,' Schumer said. He added that as the subprime market explodes, foreclosures will soar, with 8,378 families in Nassau and 10,476 in Suffolk at risk of losing houses by the end of 2008."

The Boston Herald from Massachusetts. "Home prices are rising in Boston’s fancy neighborhoods but falling in less-wealthy ones - and experts fear the Hub’s recent murder wave might make the disparity worse."

"Average condo prices plunged 29.3 percent in Roxbury and 7.7 percent in Dorchester. Mattapan’s average house price fell 8.2 percent."

"Broker John Ford and others attribute some areas’ woes to a number of factors, ranging from a generally soft Massachusetts real estate market to the subprime-mortgage industry’s abrupt collapse."

"But market watchers say the recent string of murders isn’t helping. 'Violence is obviously going to affect supply and demand,' said broker Sam Schneiderman."

"Dorchester broker Kenneth Osherow said he’s actually seen an increase in would-be buyers recently, although he assumes some house hunters have decided to look elsewhere. 'After what’s gone on, sure, there will be some trepidation - and rightfully so,' Osherow said."

The Times Leader from Pennsylvania. "Across the country, and to a lesser extent in Northeastern Pennsylvania, subprime loans made to millions of risky applicants with poor credit and low incomes have melted into a mess of foreclosures and late payments."

"George Hanzimanolis, president-elect of the National Association of Mortgage Brokers, said he’s heard stories of people taking adjustable-rate mortgages and getting 'very comfortable' with the low introductory rate."

"They then take on other debt and can’t afford the higher payment 'when it comes time to adjust.' While lenders are made to look like the bad guys, 'Consumers need to take some responsibility,' said Hanzimanolis, who works in Tannersville."

"The subprime loan meltdown comes at a time when the nationwide housing bubble has flattened, lowering prices and cluttering the market with unsold homes."

"Christopher Baduini of Wachovia’s mortgage banking director for Northeastern Pennsylvania, said there is a lot of real estate inventory in the region."

"Hanzimanolis said the stable growth has not completely insulated the region from the subprime fallout. He said there is a tightening of guidelines by lenders and the elimination of some programs."

"He said, we’re 'seeing people calling and having to turn people away.'"

"Take a home worth $150,000, for example. In the past the bank would finance it 100 percent, but with the subprime fallout, the financing is cut to 90 percent, leaving the buyer to come up with the remaining 10 percent or $15,000. That puts the purchase out of reach for people who are not able to save enough to pay that share, he said."

"The problems arose from trying to create more homeowners. 'We were challenged by the government to put more people in houses,' said Jim Bulger, president of the Pennsylvania Association of Mortgage Brokers."

"Don’t expect a quick fix from the government. The market will correct itself, Bulger and others said."