Articles we've read and lenders we are talking to are commonly suggesting loan troubles have just begun. Many programs have been removed from the lending table because in many cases the funds have been stretched thin. Mortgage companies have had to file for bankruptcy protection and many are closing offices to slow the bleeding.
The result of such an impact is that new policy is being made to add restrictions for those qualifying. Few nothing-down programs or anything short of full-doc programs are out there. One lender we talked to said that it will get worse before it gets better. She even suggested that it is serious enough to cause a recessionary pattern in the economy if something like lower interest rates aren't put into effect.
Another lender suggested a "hurricane" was coming. Mortgage companies will take months to recover from tighter policy.
There is a plus side to these predictions they have given us. The tighter policy, lack of funds and narrowed field of qualified buyers will create somewhat of a vaccum where many will want to make purchases but will be required to wait. Once either policy is relaxed or interest rates dropped another boom could occur.
The next year will be interesting to say the least.