Banks have dialed up the lending requirements in the face of the nearly half-trillion dollars lost in the mortgage mess to-date. The Federal Reserve reported that banks and lending institutions have tightened credit standards across all loan-types as losses mount and liquidity remains a key issue.

We all knew that LowerMyBills.com and LendingTree.com provided for a ‘less-than-ideal’ customer experience as consumers got battered by hundreds of calls from rabid mortgage folks; but this announcement is just plain scary. Employees caught stealing data including consumer social security numbers at Lending Tree.

First Direct has suspended mortgage lending to new customers. It has made this move following major service issues, after other lenders withdrew similar deals because of credit crunch-related funding issues.

We have seen the real estate mortgage crisis, foreclosures. Now we see the need for the home sellers to come back to reality and offer their houses according to today's value. We also see the home prices falling daily and wonder is this coming close to end? Probably not, since according to some experts the home equity loans may be the next bubble in the real estate industry ready to burst.

The Fed has tried, and tried, and tried but it still has not been able to lower mortgage rates. No matter how much liquidity they inject into the market, it doesn’t seem to make a difference.

The news has been filled with daily accounts of the credit markets demise and the effects of the collapse on the finance and real estate industries. But does the financial collapse of the credit markets hurt your chances of getting a Reverse Mortgage?

The Senate approved Bills known as FHA Modernization Bills designed to help the Federal Housing Administration modernize their approach to how they deal with the lending needs in this country.

The Fed can (and probably will) continue lowering short term interest rates but it is not doing much to bring down long term interest rates that dictate how much people pay on most mortgages.

Note on the chart above, it shows a loss to the owner of a straddle at asset prices close to the strike price. That’s because it usually costs money to acquire a straddle (or any other option).

New guidance released this week by the Departments of Housing and Urban Development (HUD) and Justice (DOJ) reinforced the right of persons with disabilities to make “reasonable modifications” to their dwellings if a structural change to their dwelling or to a common area of the building or complex in which they live is needed so that they can fully enjoy the premises.

Today, the George W. Bush Administration warns that it will veto the Foreclosure Bill. This foreclosure bill, supported by Democratic Congress leaders Pelosi and Reid, "would change American bankruptcy laws to allow judges to cut interest rates and reduce what's owed on troubled borrowers' mortgages, provide $4 billion to communities to purchase and rehabilitate foreclosed homes, and improve disclosure of subprime mortgage loans in hopes that borrowers won't be surprised by big payment increases".

According to the Washington Post today, Bush has announced he will veto the bills pending in Congress designed to allow homeowners to rewrite their home mortgages in chapter 13 cases.