The subprime mortgage correction period is happening!

Without a doubt, the subprime lending market has been tightening their belts over the last couple of months. Due to increasing loan defaults and foreclosures, this tightening means more people are pushed out of the market. These buyer will have to qualify now like everyone else and qualify on their income and credit scores. They'll have to save for a down payment and build income to manage payments. Gone are the days of lending 100% financing with stated income, or 100% investor financing etc., where any buyer with a pulse can get a loan. These practices, now referred to by the press and media as "predatory lending" have lead to a decline in consumer confidence and decline in housing sales abroad. The changes will be good for the future, and hopefully there will be some legislation to help prevent these unscupulous practices among loan brokers.