Some housing bubble news from Wall Street and Washington. Miami Herald, "When historians look back on the great economic scare of 2008, they will note that it was not until July 14 -- at least one year after the housing bubble burst -- that the Federal Reserve Board finally remembered that part of its job is to prevent abuses in the marketplace. Not until yesterday, though, did the board issue mortgage rules designed to offer a measure of consumer protection."

"In announcing the new rules, Fed Chairman Ben Bernanke said, 'It seems clear that unfair or deceptive acts and practices by lenders resulted in the extension of many loans, particularly high-cost loans, that were inappropriate for or misled the borrower.'"

"You think?"

"Hundreds of worried IndyMac Bancorp customers lined up Monday to pull as much money as they could from the failed financial institution. In Miami, Marizela Rodriguez, whose mortgage was held by IndyMac, said she didn't understand her option adjustable-rate loan meant her payments would soar. When they did, she was unable to cover the payments and went into foreclosure."

"Seeing her lender now go belly-up itself was ironic, but Rodriguez, after multiple attempts of trying to work something out with the company, she said she was not sorry about it. 'It's their own fault at this point,' Rodriguez said."

"Rodriguez said she sought help from several attorneys and even HOPE NOW. 'Every time I mentioned I had a mortgage with IndyMac they said 'Forget it,' Rodriguez said."

The Wall Street Journal. "Mortgage insurers have been dramatically tightening their standards throughout the U.S., further squeezing potential home buyers. Stung by growing defaults, lenders are offering borrowers fewer ways to avoid purchasing private mortgage insurance."

"Michael Zimmerman, a spokesman for industry leader MGIC Investment Corp., says, 'So far, we're only losing the business that we no longer want to write. The long-term objective of anybody in the housing industry should not be just affordability but sustainability. I think for the last few years, the drive and the focus have been solely on affordability.'"

"At ShoreBank Corp., a community-development bank with branches in Chicago, Cleveland and other cities, the insurers' tighter standards are 'wreaking havoc,' says Michelle Collins, director of mortgage lending. For a popular conventional loan package, 'easily 70% of the previous set of borrowers will not be able to buy,' she adds."

From Bloomberg. "Martinsa-Fadesa SA...the largest Spanish developer to seek protection from creditors since the decade-long real estate boom ended last year...failed to secure a loan that banks had demanded as part of a debt refinancing, which led to 'grave cash-flow difficulties,' the La Coruna-based company said after the market closed yesterday."

"Martinsa, which has been suspended from trading, has a market value of 680 million euros ($1.1 billion), 64 percent less than the peak reached in March. Martinsa-Fadesa was created by the acquisition of Fadesa Inmobiliaria SA by Grupo Martinsa for 4 billion euros last year. Chairman Fernando Martin owns 60 percent of the stock and the stake's value has plummeted to 408 million euros from 1.1 billion euros in four months."

"'The secret is to buy low and sell high,' said Jose Carlos Diez, chief economist at Intermoney SA. 'He did the opposite.'"

"Home prices in Spain fell for the first time in almost 10 years in the second quarter, Spain's Housing Ministry said today. Homebuyers in the country are particularly vulnerable to increases in borrowing costs because about 96 percent of purchases are financed by variable-rate mortgages."

Mortgage Solutions. "Prices in the prime country house market fell by 3.9% during the second quarter of 2008, according to Knight Frank. Liam Bailey, head of residential research, said after a period of static conditions, the malaise in the UK's housing market had finally begun to depress values for prime country houses."

"He explained: 'For the first time since 2005, prices for prime country houses have fallen on a year-on-year basis - and, at 2.8%, by the biggest margin in the history of the index.'"

From CCTV International. "Shenzhen second-hand property market entered a slump this year. Industry insiders say the shrinking business in the second-hand property market has caused many property-owners to put their houses onto the rental market, which increased overall supply."

"Housing Agent, said, 'Some property-owners with many properties are facing greater mortgage pressure. So they are willing to rent some of their units out at a discount of one or two hundred yuan.'"

The Financial Post. "Canadian home prices have started falling, marking the first decline in almost a decade, according to the Canadian Real Estate Association. 'The frenzied pace of sale activity last year has faded, with buyers now better able to shop around before making an offer,' said Gregory Klump, chief economist with CREA."

The Malaysian National News. "New figures from (Australian) property analyst Residex showed house and unit prices in nearly every city and rural centre fell last month, News Ltd reports. The last time all states fell at the same time was just before the Great Depression. The slump is affecting the top end of the market as well as the lower end."

"Residex CEO John Edwards has warned of tough times ahead. 'It looks like we're moving into a one-in-100-year event,' Edwards was quoted as saying."

The Washington Post. "The federal government's assistance plan for Fannie Mae and Freddie Mac steadied the financial markets yesterday but failed to end concern about the future of the mortgage finance giants."

"Yesterday, one senator, Jim DeMint, released a statement skeptical of the Treasury proposal. 'Congress should not use this 'crisis' to rush the government into the mortgage business,' the statement said."

The Star Tribune. "Tim Bendel, president of the Minnesota Mortgage Association, noted that with Fannie or Freddie around, 6.25 percent is a common interest rate on a 30-year fixed mortgage. 'Rates without Fannie and Freddie would be 8.25 or in that range,' he said."

"Bendel views problems with home mortgage defaults and write-offs as part of a larger pattern of concern over consumer credit."

"'America is kind of living check to check,' Bendel said. 'It doesn't matter where you make $50 grand or $250 grand, you don't have a lot of money left over to weather a storm. When a storm comes, the boat sinks.'"

The Boston Globe. "Real estate industry professionals said the US government plan to prop up the mortgage giants, while crucial to restoring confidence in the market, will also perpetuate a self-defeating cycle characterized by jittery creditors, tougher scrutiny of buyers, and fewer sales overall."

"That uncertainty may already be undermining pending deals. Broker Judy Moore said a closing on a home sale she brokered was abruptly delayed Thursday when the lender raised new questions about the financing, even though the prospective buyer had offered a 50 percent down payment and had near-perfect credit."

"She said it's an example of the extreme jitters in the mortgage market, now being made worse by Fannie's and Freddie's troubles. 'Red flags are popping up for reasons that don't make a lot of sense,' said Moore, whose agency is in Lexington. 'There doesn't seem to be any rhyme or reason to it.'"

From WLNS TV 6. "Local experts say keeping the mortgage giants in business is crucial to reviving Michigan's struggling housing market. Scott Watkins, Anderson Economic Group: 'They really provide the funding and the securitization that helps people get money to buy houses and maintain the residential real estate market that the U.S. has come to know.'"

"'We all know there's a lot of supply currently out there. That's just going to push housing prices even lower, which the government and any homeowner has no interest in seeing,' Watkins said."

The Tampa Tribune. "The current troubles are no surprise to those who have watched Fannie Mae and Freddie Mac greedily run up their debts by buying huge numbers of risky, high-interest mortgages."

"Two years ago, before the housing bubble burst, the Wall Street Journal repeated a joke that editors had heard from financial insiders: 'What's the difference between Enron and Fannie Mae? The guys at Enron have been convicted.'"

The Memphis Daily News. "As the U.S. prepares for a presidential election and looks forward to the Olympics in China, the year strikes an uncanny resemblance to 1988. Just like what's happening in politics and sports, the mortgage industry is experiencing a little déjà vu."

"'I feel like we've turned the clock back 20 years,' said Mary Floyd, senior VP at Financial Federal Savings Bank. 'We're back to the old standard.'"

"The old standard has taken a toll on mortgage counts in Shelby County following a few years of extremely lax lending practices. 'The guidelines continue to change and shift on a regular basis,' said Chris Bowers, president of the Memphis Mortgage Bankers Association. 'Many times they will come in with the expectation that a particular program that they heard about a month or two ago and should be available to them is now gone.'"

"The mortgage woes in the Memphis area are substantial, but not always as bad as other markets, where values have nosedived. 'The best thing that could happen, in some ways,' said West Beibers, president of Delta Trust Mortgage Corp, 'is to unplug CNN and unplug CNBC and get a grip.'"

The Las Vegas Business Press. "From high-rise condos and regional shopping malls to billion-dollar resorts and mixed-use developments, dozens of projects announced for Las Vegas have yet to materialize and some probably never will."

"You better not have plunked down a deposit for a luxury condo at places like Spanish View Towers, Vantage Lofts or Mira Villa. Construction is stalled on those projects as they proceed through bankruptcy protection. Cosmopolitan, a $3 billion condo-hotel on the Strip, is in foreclosure."

"Already laid to rest are The Curve, Las Ramblas, Ivana, Icon, Spa Lofts, Pinnacle, Urban Village and W Las Vegas Hotel."

"The recession is a 'self-cleaning of the economy' that will sift out developers who came to the party late, said Avi Ruimi, principal of Woodland Hills, Calif.-based Blue Marble Development. He bought the land for Paxton Walk in northwest Las Vegas before the runup in prices. Paxton Walk suspended sales until the market recovers."

"'They all had good intentions. I feel bad for them,' Ruimi said. 'Each of them made a different mistake. I can analyze those mistakes in retrospect. At the time they made the decision, they were right. It's very difficult to predict a market like Vegas. It's not a market that gives you a sign before the bubble bursts in your face.'"