I received an article from the Real Estate Digest courtesy of Chicago Title and I wanted to pass this information on to you.  Here is what the article said about subprime- quote " Although subprime has become a dirty word in the country's collective lexicon, mortgage bankers say you can count on this: subprime shall return.

But the next generation of subprime mortgages will look much different than the loans issued during the height of the housing boom in the first half of the decade, mortgage professionals say.  "So long as we have a policy position in this country of maintaining or further increasing homeownership rates there is going to be subprime lending," said Mark Fleming, chief economist with First American CoreLogic.

As such, subprime mortgage products are slowly being redefined, he said. "There has been a shift back to basics across the entire mortgage lending spectrum, using more reasonable assessments of what buyers can afford," Fleming said.  People now need better credit scores and a larger down payment to get a mortgage, in addition to documenting their incomes and providing where they work, he pointed out.

The more stringent guidelines are important for another reason; for subprime products to come back to the market with any significance, it's necessary to first build up the confidence of those who invest in them, Fleming said. How will the confidence be fully regained? For one: "We have to do a better job of making sure a high percentage of the loans aren't headed for default to begin with," Fleming said.

In the mortgage industry, expect to see a return in focus to the writing of quality loans- not just doing a large quantity of them, Fleming said. And perhaps part of the lender's mission should also be helping subprime borrowers graduate into prime loans, he added." end quote.

I believe as the mortgage industry changes we will start to see a increase in the real estate market and it is starting to happen already!