Some housing bubble news from Wall Street and Washington. "Retailer Lowe's Cos. reported a lower-than-expected first-quarter profit on Monday as the slower U.S. housing market pressured sales and cut its full-year earnings forecast. In a statement, Lowe's said a difficult U.S. housing market, tough comparisons to hurricane rebuilding efforts and falling lumber prices pressured results."

"Last week, industry leader Home Depot Inc. posted a 30 percent decline in first-quarter profit as its retail store sales fell."

For Reuters. "Troubles in the U.S. housing market will weigh on economic growth this year even more than earlier estimated, according to a forecast of economists released on Monday."

"The survey of 48 economists taken between April 19 and May 8, found that housing market troubles, particularly those in the risky subprime mortgage lending market, will drag out through this year. 'Residential investment remains a dominant force dampening growth in 2007,' NABE wrote."

From MarketWatch. "The spring housing market is turning out to be something of a dud, dashing hopes of a turnaround. 'The housing market is struggling to get back on its feet,' according to economist Sal Guatieri."

"'The spring-selling season is coming well below expectations,' agreed Mario Ricchio, a housing analysts with Zacks.com."

"Many factors are at work. Buyers are hesitant to buy a home if they think prices are falling. Sellers have pulled homes off the market, waiting for prices to rebound. In addition, tightening lending standards are hurting home buyers. At the same time, speculators are fleeing the market, Ricchio pointed out."

"Countrywide Financial Corp. CEO Angelo Mozilo said on Monday that proposed regulation in the subprime mortgage industry would help crooks while hurting legitimate lenders and the housing market."

"Mozilo said current guidelines proposed by regulators would exacerbate problems in the housing market. 'The reason why people can't sell their houses is there are no buyers around,' Mozilo said. 'And there are no buyers around because they can't get the financing.'"

"Kieren Quinn, chairman-elect of the MBA, acknowledged in the Mortgage Bankers Association conference's opening remarks that subprime woes had given the entire mortgage industry a black eye."

"Quinn also drew comparisons to Major League Baseball's steroids scandal. He said the industry needed to continue to scrub the industry, 'or we'll get ugly, ugly regulation.'"

The San Francisco Business Times. "Subprime mortgage lending's deep freeze has sent a chill over the rest of the mortgage industry as layoffs spread to those who lend to the more creditworthy."

"GreenPoint Mortgage, a unit of Richmond, Va.-based Capital One, laid off 70 employees. The company makes so-called 'Alt A' mortgages, which go to borrowers that fall between prime and subprime. A big part of GreenPoint's business is making jumbo loans, those that exceed Freddie Mac and Fannie Mae's loan limit of $417,000."

"Another broker hard hit by the downturn is Lending Tree, which funnels loan applications to lenders across the nation. The Charlotte, N.C., company said this month it will lay off 440 workers, or 20 percent of its staff."

"San Rafael mortgage broker Paul Financial let go of 36 employees this month. Peter Paul, president of Paul Financial, said the company won't make money this quarter given the drop-off in lending and the decision to set aside reserves for loans that might go bad down the road."

"Looser lending in the Alt A and other segments of the mortgage market is now taking its toll. 'Some lenders were really making Alt B loans,' Paul joked."

National Mortgage News. "The Illinois Association of Mortgage Brokers has sent out an alert to its members, warning that if a new proposed amendment passes bankers and brokers will not be able to originate any 'stated-income' or 'non-income-verification' loans. The trade group fears that if the language passes, loan offices will be held 'personally responsible' for their actions and could have their personal assets attached by the state attorney general."

"A large hard-money lender is on the verge of closing its correspondent division, according to one industry source who has played in that market. The source, requesting anonymity, said the lender also is entertaining buyout offers from two groups."

"Are non-depository subprime funders beginning to see some relief in the secondary market? 'If we get 101 for a loan we consider ourselves fortunate,' said the president of one West Coast-based B&C shop. 'If we get 101.5 we consider that a fortune.'"

"Prices offered for nonperforming second liens that were part of 80/20 combos are still at rock bottom, in the range of $0.08 to $0.10 on the dollar."