Hovnanian Enterprises Continues to Leak Red Ink (BUILDER Online News Service) - Hovnanian Enterprises, the industry's sixth-largest builder, lost $80.5 million, or $1.27 per share, during the three months ending July 31. The builder's quarterly revenue fell 27.1 percent to $1.55 billion, as its deliveries declined by 32.1 percent to 3,179 homes. Through the first nine months of its fiscal year, Hovnanian's sales were down 22.6 percent to $3.41 billion, and it lost $168.5 million, versus an earnings gain of $256.8 million in the same period a year ago.

New Mortgage Foreclosures Set Record (Associated Press/AP Online) - The Mortgage Bankers Association reported Thursday that mortgage holders starting the foreclosure process in the April-June quarter reached 0.65 percent, marking the third consecutive quarter that this figure has set an all-time high.

Critical Housing Needs on the Rise (BUILDER Online News Service) - A new study by the Washington, D.C.-based Center for Housing Policy reports that from 1997 to 2005, families that paid more than 50 percent of their income on housing and/or live in substandard conditions increased 73 percent. The study says some 5.2 million working families experienced critical housing needs in 2005 compared to 3 million in 1997.

Fed: Credit Crunch Effects Limited (Associated Press/AP Online) - A painful credit crunch is taking its worst toll on the already ailing housing market, while its impact on the rest of the economy so far seems limited, the Federal Reserve reported Wednesday.

Congress Poised to Grill Regulators (Associated Press/AP Online) - The worst housing slump in 16 years and upheaval in financial markets have cast a shadow on the economy, leading lawmakers to question federal regulators about the path ahead for anxious consumers.

Former NAHB Chief Economist Michael Sumichrast Dies (BUILDER Online News Service) - Noted housing author and former NAHB chief economist Michael Sumichrast died yesterday of respiratory failure. He was 86.

Builders Meet With Fed to Discuss Mortgage Crisis (BUILDER Online News Service) - Some of the same builders whose companies created the excess inventory that helped push the housing industry into its current downturn are reportedly meeting today behind closed doors with Federal Reserve chairman Ben Bernanke to discuss what can be done to prevent owners from losing their homes to foreclosure.

Construction Spending Plunged in July (Associated Press/AP Online) - Construction activity plunged in July by the biggest amount in six months as spending on homes fell for a record 17th straight month.

ONLINE FEATURES

Sustainability Now - Green building standards are becoming more universally accepted, but sustainable growth is not without its roadblocks. BUILDER Online looks at some newly released eco-building programs and findings.

Mold-Free Model Home - Show houses are a great way for builders and manufacturers to showcase the latest and greatest in products, materials, construction techniques, and design. This month, the first-ever show house for mold prevention opened its doors in Chesterfield, N.H.

BLOGS

Would a Fed Rate Cut Really Help Housing? - We've seen some economists argue in recent days that the Federal Reserve Board needs to cut its federal funds rate on overnight loans to stop the housing industry's downward spiral and forestall a recession in the overall economy. This argument, while seemingly persuasive, makes several outdated leaps in thinking.

Bush's Response: On the Right Track - Living inside Washington, D.C.'s famed beltway, I heard a lot of conversation this weekend about the proper government response to what's going on in the mortgage market. Judging by the escalating coverage of this situation in the media throughout the country, I bet you did, too.

FROM THE MAGAZINE

Down-Payment Woes - In yet another tightening of mortgage lending, HUD has proposed the elimination of seller-funded down-payment assistance programs for loans insured by the Federal Housing Administration (FHA).

What Downturn? - Intense competition and soft buyer demand don't prevent opportunistic builders from expanding into new markets.

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