The Fed is going after subprime lenders. This comes as good news to an industry that needs some cleaning up, but bad news to the housing market.  The continued focus on lenders has caused lending companies to tighten their guidelines for obtaining loans in an attempt to clean up their image and improve themselves with the fed government.  What it has also done is removed a chunk of buyers from the buyer pool.  This obviously effects buyers that are boarderline to begin with, some that should not be buying a home and some that would succeed at home ownership if they were given the chance.  This decreases the buyer pool in an already slowing housing market. 

I have seen enough problems in the lending industry and the lack of accountability that has gone on to want there to be some sort of change.  I am held accountable for my practices through our state licensing laws and by my affiliation with the National Association of Realtors. 

Since the Lender is a big part of the home buying process, which is usually the largest investment that one makes, it pays to interview several lenders, and speak with an accountant or financial planner about your decision making process.