From Owen Hennefer, our in-house lender:

Indymac yesterday completed two trades for mortgage-backed securities with Private Investors.

These are the first non-GSE trades in the last 36 days. So, this is a good sign that the panic may be subsiding and private money could bring liquidity back to the mortgage market. I still wouldn't expect a quick turn-around, but it's a start. As things come back it will unfold from quality prime loans first and eventually we'll see some movement in some of the riskier products as they start to open up a bit again. Don't hold your breath for option arms or stated w2 to get aggressive again, but we could see some of the other alt-a products that make sense and have historically performed well come back, but likely at reduced loan-to-value.

People are going to have to be able to afford their home now. That's the new market and that's the mentality you have to embrace to continue to survive this market. The quicker you move to build your business, marketing and clientele around that concept the quicker you will ramp up start to take advantage of what is there.