Home builders and the many related industries are getting more bad news as home foreclosures are taking another bound. A report finds foreclosure filings climbed another nine-percent from June to July and are up 93% from a year ago.

Iowa Senator Chuck Grassley, a ranking member of the Finance Committee, says some lenders clearly need to use more discretion before handing out huge sums of money. Grassley says: "We need more regulation of the secondary loan market, at least more transparency. Loaning agencies were very cavalier about who they were loaning to. I’ve even read reports of people getting loans without even checking to see if they had a job, without checking the credit rating, just to get the loan out the door, get people signed off."

He says too many banks are taking a "laissez faire" approach to making the initial home loan, and then secondary lenders are making the same mistake with second mortgages and "home equity" loans — bringing us the jump in foreclosures. Grassley says: "Banks are beefing up their review of who qualifies for loans and who don’t and our regulatory agencies like the Federal Reserve system or National Banks, that control the currency for national and state banks to some extent, and the F.D.I.C. is beefing up their regulations."

While the problem is complicated and far-reaching, he says the solution is relatively simple. Grassley says, "What we learned from this is to be more cautious in the future who we loan to and make sure they have the ability to repay." The report from RealtyTrac says the national foreclosure rate last month was one filing for about every 700 households. Iowa ranked 33rd in the U.S. for foreclosures, with one foreclosure filing for every 2,700 households. Nevada, Georgia and Michigan had the highest rates.