Authorities revealed in federal court Wednesday that they are investigating allegations of a mortgage fraud conspiracy involving about 200 houses in several southern Twin Cities suburbs.The investigation is tied to a rash of foreclosures in New Prague and New Market, and possibly other suburbs, and some people who were renting the houses have been evicted. The government estimates losses of more than $50 million.

In a subdivision called Prague Estates in New Prague, knee-high weeds have sprouted up around some of the houses. In one abandoned house, garbage was strewn across the living room floor.

In real estate some say it’s all about location, but in Michigan’s rocky economy it’s more about price.

A study by the Michigan Association of Home Builders found that 1.35 million Michigan households, or 35%, can afford only homes priced under $100,000, yet the average price was $139,155 in June.

“There is no question that affordable housing is becoming an endangered species in Michigan,” said Lee Schwartz, executive vice president for government relations for the home builders.

Jill Rauser, 35, a single mother of two, knows the problem firsthand. Rauser, who handles human resources for a Troy company, had been looking for more than a year for a newer home priced at less than $160,000.

LONDON — The Bank of England held official interest rates steady at 5.75 percent on Thursday, saying it was too early to predict the effect on the wider British economy of recent global market jitters about shrinking credit levels.

Taking the unusual step of releasing a statement with its decision to keep rates on hold, the central bank said it was keeping a close eye on market developments, while stressing that its duty is to keep inflation on track for the government’s 2 percent target.

WASHINGTON — The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages.

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.

The delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring, rising to 5.12 percent of all loans, up nearly three-fourths of a percentage point from the same period a year ago.

With Congress back from recess, Washington is resuming discussion of the sub-prime mortgage mess and how government might help the millions of American homeowners facing foreclosure.

So far, policymakers have advocated restraint. In a speech last week, President Bush called on lenders to help qualified borrowers restructure their mortgages. He also suggested letting the Federal Housing Administration insure refinanced loans for borrowers with good credit and waiving taxes on forgiven debt when loans are restructured. The Federal Reserve Bank and other banking agencies have advocated guidelines to combat predatory lending and this week backed the president’s call to lenders.