Some housing bubble news from Wall Street and Washington. "Homeowners unable to pay monthly mortgage bills and facing foreclosure shouldn't count on help from Washington this year. Regulators and lawmakers seem to be taking a wait-and-see approach as they confront the fallout from several years of lenders making too many home loans to people with inadequate credit."

"Mark Adelson, an analyst with Nomura Securities, warns that the housing market would be hurt if some banks overzealously arrange loan workouts. 'Lending money is not about being nice,' Adelson said. 'It's a business.'"

"And though Sen. Charles Schumer wants $300 million of government money, matched dollar-for-dollar by mortgage lenders, to be channeled to community groups that help distressed homeowners avoid foreclosure, his proposal has gained little traction."

"On the regulatory front, the Fed has scheduled a June 14 hearing about whether to take action under a 1994 law that gives it authority over deceptive mortgage practices by any lender, not just federally regulated banks."

From Bloomberg. "New York Attorney General Andrew Cuomo, who is investigating whether mortgage brokers pressured appraisers to inflate property values, subpoenaed records from Vanderbilt Appraisal Company LLC."

"Three appraisers and a mortgage broker have now said they received subpoenas from Cuomo."

"Ohio Attorney General Marc Dann yesterday sued 10 real- estate companies, accusing them of improperly pressuring appraisers to inflate property values."

"The companies, based in Ohio, California, Arizona and New York, are accused of setting specific estimated values on properties and communicating a desired price to appraisers, according to the lawsuits filed against seven mortgage brokers, two lenders and an appraiser."

"Those sued include seven mortgage brokers, two lenders and an appraiser.Foreclosure filings in Ohio jumped 135 percent in April from a year ago, pushing the state's rate to almost two times the national average, according to RealtyTrac."

"States have opened investigations of mortgage brokers, lenders and appraisers as delinquencies rise across the U.S., led by subprime borrowers."

"'It's a step in the right direction,' said Jonathan Miller, a New York-based appraiser for two decades who says appraisers often face pressure from brokers and lenders. 'Finally someone is listening.'"

"Vu Ho, a managing director of American Home Brokerage, said his company doesn't do business in Ohio. He also said it faxes a standard form to all appraisers seeking an estimated value before it commissions a full appraisal."

"'We have to do a value check,' Ho said. 'We don't push values.' The other companies declined to comment."

"The lawsuits seek at least $250,000 in civil fines, or $25,000 from each of the 10 defendants. The attorney general also asked for injunctions barring similar acts in the future and for the courts to order an unstipulated amount of refunds to consumers."

The Daily Times. "Washington Mutual on July 20 will close its Longmont branch, which it opened 4 1/2 years ago. The Longmont branch is one of seven in Colorado that are being 'consolidated' as part of the company’s 'normal course of business,' according to spokeswoman Missy Latham."

"The bank will close at 1 p.m. July 20, according to a note to customers taped to the door."

"Defaults on subprime loans have hit Washington Mutual hard. In the first quarter of 2007, WaMu lost $113 million on home loans, according to the company’s financial reports. It projects that it will make $8 billion in subprime loans this year, down from $27 billion in 2006. The company also has reduced its staffing by 27 percent over the past year."

The Birmingham Business Journal. "The national crash of the subprime mortgage-lending industry has hit Birmingham hard, a recent study found. More than half of the mortgage companies in Birmingham have closed as a result of the subprime mortgage-lending industry, revealed a study."

From Reuters. "Few U.S. consumers expect any renewed strength in home prices until the middle of next year, though they cautiously concluded that the worst of the sector's slump is over, a survey released on Friday showed."

"Until that improvement takes place, a stalemate in the market is likely to prevail as buyers await further falls in prices, but sellers remain reluctant to sell after recent declines, according to the survey by Richard Curtin, director of the Reuters/University of Michigan Surveys of Consumers."

"'This standoff has remained largely unchanged since the start of 2007, but it is likely to gradually recede over the next year,' Curtin said in a statement on the survey."

"Also, Curtin said that financial institutions are likely to constrain borrowing against home equity based on smaller estimated home values that reflect market changes."

"U.S. economic growth will pick up through the end of this year, making it unlikely the Federal Reserve will cut interest rates before 2008, according to economists surveyed by Bloomberg News this month."

"'Inflation numbers have been better but they may still bounce back again, and that's why the Fed can't cut rates,' said Ethan Harris, chief U.S. economist at Lehman Brothers Holdings Inc."

The Orange County Register. "Hopes for cheaper mortgages during a slowing housing market seem to be disappearing. Long-term rates in Orange County rose this week to their highest level in more than nine months. And more increases could be on the way."

"John Belles, VP and sales manager with Bank of America in Brea, said higher mortgage rates are coming at the wrong time, adding more strain to a stalled housing market. Homesellers are just beginning to offer more reasonable prices, he said."

"The busy selling season that begins in May and lasts through the summer so far hasn't materialized, he said. 'These next few months are going to tell all,' he said."

"As for what consumers should do in this market, Jeff Lazerson, president of loan brokerage Mortgage Grader in Laguna Niguel, said someone should only buy a home if they plan to live in it for at least five years. Values are slipping, and buyers should know they could take a loss if they have to sell soon after buying, he said."

"But those looking to refinance should do so quickly, before home values erode further, he said. Belles said the same thing."

From Smart Money. "For the last year, ever since the Fed stopped raising interest rates...virtually every major Wall Street economist has been absolutely positive that the Fed would lower rates as economic growth got slower."

"But over the last week, one by one, all the most high-profile Wall Street doves have changed their minds."

"Crow is what the doves are eating this week. But this is different. This is one of the biggest crows I've ever seen. And it's making one heapin' helping for the doves who are having to choke it down. The biggest serving of all is being masticated by Bill Gross, the perpetually dovish bond manager for PIMCO."

"Yesterday he got in line behind ISI, Merrill Lynch and Goldman Sachs, all hopeless, hapless doves now spitting out crow-feathers."

"The idea that the economy will falter, requiring the Fed to bail it out with low interest rates, has been the conventional wisdom since early 2004. Remember how the Fed kept rates at an ultra-low 1% for such a long time, and then started ratcheting them up 25 basis points at a time starting in 2003?"

"Just about when rates hit 2%, all the Wall Street economists decided that the Fed wasn't going to raise rates anymore, because there was always some reason why the economy was going to come off the rails. High energy prices. Rising debt. Hurricane Katrina. The housing bubble. The housing bust. Subprime mortgages. It's always been something."

"Shares of home builders slid on Thursday, dragged down by a warning of weaker sales from Meritage Homes Corp.,h plus fears of rising interest rates."

"'Interest rates are part of the concern at the moment, but it seems like there are more impairments coming for this group all the time,' said Mike McGarr, a portfolio manager and analyst at Becker Capital Management, which manages around $2.5 billion in assets."

"McGarr said the news was unlikely to improve any time soon. 'The fundamentals for the home builders were so good for so long,' he said. 'The sense is that it's going to take the fundamentals a long time to unwind.'"