The Detroit News reports from Michigan. "Michigan's largest lender Quicken Loans Inc. is retrenching, including freezing hiring in the state, as it sets a new course in the turbulent mortgage industry. The Livonia-based mortgage giant is lowering goals for its loan writers, ending mortgages that investors no longer will buy on the secondary market, and introducing new products backed by the federal government in its effort to gain market share in a shrinking industry."

"The culprit behind the struggling mortgage industry and Quicken's need to adjust: the worst housing slump in nearly two decades."

"Eight ex-employees told The Detroit News that unrealistic sales goals, in a tough mortgage market, led to their dismissal or decision to quit in August and September. They say the goals were laid out in an 'Opportunity Letter.'"

"'I got a letter saying they wanted me to write 10 loans by the end of the month -- superstars were doing five or six a month,' once the market took a dip, said Steven Campisi, a mortgage banker who worked in Quicken's Cleveland office. 'I knew what they meant: They wanted me to go.'"

"As for the mortgage industry as a whole, it should begin looking up as the credit crunch eases, Quicken CEO Bill Emerson said. 'Credit guidelines probably got a little too loose, and now they've corrected, perhaps too much,' he said."

The Citizen Patriot from Michigan. "The number of mortgage foreclosures in Jackson County this year has reached 950 -- the highest it's been in about 20 years, maybe longer, officials said. The number is 10 times greater than it was 10 years ago, and there are still two months left in the year."

"Officials say there are several reasons why the foreclosure rate is growing: job loss, rising adjustable-rate mortgages, an unstable housing market and flat or declining income."

"Record homeownership levels in the state increase the probability that more people can't make payments, according to a state mortgage brokers group. And the road to foreclosure is a slippery slope. 'You legally only have to miss one payment to start the process,' said Pava Leyrer, president of the Michigan Mortgage Brokers Association."

The Business Journal from Indiana. "Pending sales of houses-those with contracts signed by not closed-plummeted 16.8 percent in September from a year earlier, according to Metropolitan Indianapolis Board of Realtors figures released today by brokerage F.C. Tucker Co. Sales in Boone County fell the most, by 42.7 percent."

"'Central Indiana's housing market is continuing to balance out,' said Tucker President Jim Litten. 'Inventory levels are still increasing slightly, but we are hopeful that the decline in new home construction and the steady pace of existing homes sales will be reflected in sales statistics in coming months.'"

The Rockford Register Star from Illinois. "Kitzman’s Lumber and Building Materials opened in 1979 as a straightforward hardware store, but that wouldn’t be enough to succeed in 2007. Many businesses are finding that diversification is the key to growth, maybe even survival, as subprime mortgage woes and credit crunches affect the economy."

"Kitzman’s major customers are the area’s custom home builders such as Sean Adams Custom Carpentry of Byron and Zimmerman Home Builders of Rockford. Still, housing starts for the tract builders as well as custom home builders were down more than 30 percent through May."

"'We’re very fortunate because not all of our eggs are in the residential market,' said Scott Kitzman. 'Last year was a phenomenal year. If we were just in home construction, we’d be down 10 to 15 percent.'"

The Chicago Tribune from Illinois. "A new study by a home-improvement industry research firm found that the nation's homeowners, expressing doubt about the market, are doing fewer fix-up projects. And they're holding the glitz."

"'The thrill is gone,' said Bruce Forni, a Detroit-based researcher whose firm, TNS-NFO, this summer studied 2,900 homeowners for a trade group that held its fall meeting in Chicago last week. 'Fewer people are saying [they're remodeling] because they want the best house in the neighborhood.'"

"Forni said the shift may come from homeowners too time-pressed to pay as much attention to their homes as in years past. But it also may be a reflection of housing-market jitters, said Forni, whose company conducted similar studies in 2003 and 2005."

"'Home isn't a safe [financial] haven any more,' he said. 'Homeowners are uncertain about the stability of their primary investment.'"

"He also said historically low interest rates no longer seem to be spurring as much remodeling. Freddie Mac has reported that the amount of home equity cashed out through refinancing in the second quarter was down about 25 percent from the year earlier. Forni said consumers tend to have low opinions of interest rates, particularly of adjustable-rate loans and mortgages."

"'Maybe they just don't have the equity to borrow against,' he said."

"Though the home-improvement institute's study found a large majority of homeowners said they agreed, at least to some extent, that putting money into their homes 'is always a good investment,' they were less confident when asked whether home values would increase in the next two years."

"'That's where it starts to get disconcerting,' Forni said. 'They're not seeing near-term improvement. There could be less confidence in trying to increase the value of their home.'"

"Rick Baumgarten, president of Lee Lumber on Chicago's North Side, said there is a big segment stuck in neutral, watching to see whether home prices drop."

"'Instead of spending $60,000 to do their kitchen or $80,000 doing a room addition, they're telling themselves that the prices are coming down so much that they may be able to get a home that's got all those things done already,' said Baumgarten."

"South suburban remodeling company executive Jack Philbin said he is hearing some tales of woe."

"'I know from talking to many of my suppliers that they're hurting,' said Philbin, president of Philbin Construction & Remodeling in Crestwood. 'One company that deals with insulation and drywall tells me their business is down 50 percent. One of our millwork suppliers is having a strong cutback in staffing, getting back to the nitty-gritty of people.'"

The Standard Democrat from Missouri. "Foreclosure rates in the area are beginning to edge up, a shadowing of what is occurring in the national market."

"'They are by far higher this year,' said Tom Dirnberger, Scott County recorder. 'Every day, we’re getting one or two, and it used to be one or two a week.'"

"In fact, a record number have already been filed this year. More than 200 were filed so far this year — a sharp contrast to the 153 total filed in 2006."

"A big chunk of the filings in Scott County deal with land fraud. 'In Scott County, there have been at least 300 fraudulent loans — fraudulent meaning loans given on properties that were over-appraised,' he said."

"'It’s just been aggressive lending practices in general,' said Lori Fowler, a broker in Sikeston."

"One practice has been 100 percent financing often offered to borrowers. 'People who wouldn’t have traditionally qualified for a home qualified,' she said. 'Some people who were not as financially stable were buying houses.'"

"'I think most of the real estate agents in this area think the real estate market has been a little softer this year,' Fowler said. 'Sellers have to be a little more patient; and they may not get that really high dollar they were getting recently for their homes.'"

The Rapid City Journal from South Dakota. "Although some areas of the United States seem to be headed for a housing meltdown, builders and Realtors in Rapid City say the market here is holding its own for the most part."

"'Our market, contrary to all of the negative publicity from coast to coast, is not seeing that reality,' said Sheila Tom, president of the Black Hills Board of Realtors. 'All real estate is local, and what's going on here might not reflect what's happening there.'"

"On the construction side, building permits for single-family homes is down about 18 percent in Rapid City and Pennington County in the first eight months of the year."

"For area builders, their biggest fear is fear itself. If people perceive that the housing marketing is headed for a fall, they will be reluctant to buy a new home - or a bigger home. It could become a self-fulfilling prophecy, they fear."

"Builders have been trying to counter the perception that the housing market is in the dumps. Meanwhile, they've also cut back to reduce the inventory of houses."

"Contractor Ken Fuerst of K1 Construction in Rapid City said he built 14 houses a year during the peak times; this year he's done about four houses so far."

"Scott Mueller of Mandalay Homes, one of the biggest builders in the area, said his company has about 45 homes in some stage of permitting, construction or sale. That's about half what it was in 2005, he said."

"Black Hills home values have seen steady, not spectacular, growth over the years. The average price increase has ranged from 4 percent to 6 percent in recent years. We simply don't have that far to fall."

"However, Sgt. Mike Dailey of the Pennington County Sheriff's Office said foreclosures have been on the rise. So far in 2007, the sheriff's office has handled 74 foreclosures, compared with 58 during the same period last year and 57 in the first nine months of 2005."

"In 1997, the Pennington County Sheriff's Office was involved in 33 foreclosures for the entire year."

"Jack Lynass of BankWest in Rapid City said he remains bullish on the Black Hills economy. 'I think the Black Hills area is recession-proof; we've been through tough times,' he said."