The housing finance crunch can be alleviated now, and easily. It requires monetary legislation - a primary purpose of our government - to maintain a level playing field during difficult times.

ROLL BACK (to starting rate) ALL INTEREST RATES ON VARIABLE INTEREST LOANS WHICH PUT TOO MUCH FINANCIAL STRAIN ON MARGINAL HOME PURCHASES.

For the future the government needs to insure that lenders do not allow purchasers to buy to much of a mortgage relative to their incomes. The buyer is done no favors even if he thinks it is good to buy to the limit. Too many circumstances can turn a good thing into a financial horror story. Former Realtor

We had over 20 years of real estate appreciation and building over the span of 3 years. We borrowed from the future both the gains, and the jobs. Now we have to give them back. It was a scam that was a massive Ponzi scheme, the loan companies were covered as long as the appreciation was hard and fast enough to hide their sins. Now that isn't the case. The fooled trick loan buyers can't "refi" there way out of trouble when their house has gone down in value.. So yes, this is some hard stuff we have happening, and if you know anyone involved with being a mortgage broker or originator, take a poop on their lawn, they deserve it. And real estate agents, thinking apprecation numbers like this could be sustained, deserve similar treatment. We have to give back all those advances, THEN we will be at the bottom.