Some argue that refinancing is a slam-dunk economic stimulus.

Federal Reserve announces agenda for August 5 public hearing on Home Mortgage Disclosure Act

Federal authorities accused a Las Vegas home builder on Wednesday of defrauding lenders by inflating home prices.

Here is a look at real-estate news in today's WSJ:

Christopher Dodd and Barney Frank, authors of the U.S. financial overhaul, plan hearings on the status of global talks to revise bank-capital standards amid worries that proposed rules are being watered down. - - - -

Administration's Housing Bailout: The Big Disconnect

Did you know that over the last few years, the portion of the home that's financed has changed?

Modern America has long paired the "America Dream" with home ownership. The idea of staying put, paying property taxes and periodically mowing the lawn belonged to citizens who were somehow more American than the poor saps who could only afford to rent the place they called home.

CR NOTE: There have been a couple of "stimulus" proposals making the rounds over the last couple days from major analysts. Housing economist Tom Lawler takes a look at one proposal from Morgan Stanley ... the following lengthy discussion is from Lawler : “Slam-Dunk” Stimulus? MS = Missing Something!!!! Early this week Morgan Stanley put out a piece entitled “Slam Dunk Stimulus,” in which MS analysts argue that changing mortgage refinance “requirements” (for GSE or government mortgages) would “inject a significant amount of stimulus into the US household sector,” have “zero impact on the budget deficit,” and would “not require an exit strategy” and would “not distort markets.” Here is the gist of their argument: “If it were possible to inject a significant amount of stimulus into the household sector of the US economy over the near term and this stimulus had zero impact on the budget deficit, did not require an exit strategy, did not distort the markets, and took effect almost immediately, wouldn’t it seem like a slam dunk? Such an option actually exists in the form of a change to mortgage refinancing requirements. The Fed – and market forces – have pushed mortgage rates to historic lows. However, many homeowners are unable to take advantage of the low rates because they are blocked from refinancing by a high loan-to-value ratio (LTV), appraisal problems, unemployment, and low credit score, etc. This problem could be addressed if the Government merely recognized the guarantee that already exists on the principal value of a very large portion of the mortgage market – specifically, the mortgages that are backed by Fannie, Freddie and Ginnie – and acted to streamline the refi process.” The analysts note that with the “median” universe of outstanding 30-year fixed-rate mortgages being around 5.75%, and with current 30-year FRMs being around 4.50%, the potential rate reduction could average about 125 bp, which could translate into stimulus of around $46 billion a...

Hank Paulson, the criminally inept Treasury Secretary who shoveled trillions of taxpayer dollars to insolvent banks, and facilitated the grand theft of some near $20 billion dollars from AIG to Goldman Sachs (where he was previously CEO), is now trying to rewrite history. In today’s Washington Post piece, Paulson ignores facts and rewrites history, fabricating the causes of the economic collapse: “A significant root cause of the crisis was the combined weight of government policies promoting homeownership; these are apparent in the housing GSEs, the Federal Housing Administration (FHA), the Federal Home Loan Banks, the federal tax deduction for mortgage interest and various state programs. Homeownership was overstimulated to the point that it was unsustainable and dangerous to the broader economy.” Let us point out that through out the 20th century, interest rates stayed within a range that was realistic relative to economic growth, and that lending standards were based upon the borrowers ability to service that debt. This involved such quaint notions as income, employment, credit history, other debt servicing, and assets. Further, home loans were based on a specific LTV — meaning a down payment was required. Legitimate appraisals were done by banks that actually kept the loans on their books for 10 or 20 years — not 30 days. None of this finds its way into Paulson’s assessment of the causal factors. How about Alan Greenspan? One systemic risk that is at the root of the crisis was the irresponsibility of Greenpan as Fed chair. His Federal Reserve’s generational ultra-low rates set the housing spiral in motion. Astonishingly, Paulson did not see fit to mention him Greenspan or the Federal Reserve at all. Astonishingly, Paulson makes no mention of the Federal Reserve’s ultra low rates — they are not worthy of mention either. Don’t go looking for the word “derivatives” in his piece, its not there. Misaligned compensation? Leverage of investment houses? Repeal of Glass Steagall...

In Phoenix, Freddie Mac () FREDDIE MAC TO AUCTION OFF FORECLOSED PHOENIX HOUSES