Is mortgage market veering toward meltdown?

'Fantasy' that home prices only increase has been punctured

Recently I have been getting a lot of mail from mortgage brokers and small lenders complaining that they are no longer able to get funding for loans that previously were never questioned. One of them described it as a market meltdown. I promised to take a hard look.

Fortunately, I have been developing a database on wholesale mortgage prices that lets me peer into the heart of the problem, if there is one.