The financial meltdown is fast taking its toll on the lending and financing markets. While several local lenders are closing down their services national mortgage lenders with services across several states are finding ways on how they could reduce effectively operation costs and minimize the impact of the financial crisis on the lending industry.

With huge financial institutions like Lehman Brothers and AIG needing bailouts left and right, the stock market plunging to all time lows and foreclosures becoming a huge problem for several homeowners.

The federal government has issued statements urging national mortgage lenders to allow more flexibility on the terms being given to homeowners out for refinancing or opting to re-negotiate the terms of mortgages which may be up for foreclosure.

Just recently, the federal government has brought up proposals in order to help homeowners survive the crisis and prevent defaults.

United States President George Bush has asked Congress to study the possibility of suspending for some time, the tax fines or tax liabilities imposed upon borrowers who are opting to refinance their homes, renegotiation their loans or those whose lenders forego a certain percentage of their mortgage debts.

This may sound good for several homeowners but may pose certain risks to national mortgage lenders who themselves are trying to survive the crisis.

A good number of homes that have been foreclosed could not be recovered based on their original market values with the recent bursting of the real estate bubble.

Certainly a solution amenable to both homeowners and lenders needs to be arrived at and fast.