What's next for the Subprime Mortgage sector

There is no shortage of media coverage on the downturn in the Subprime sector of the mortgage industry. Industry leader New Century's filing for bankruptcy and the recent sale of Option One, another industry giant, are just two of the many stories that have appeared in the news.

This shakeup has lead to a significant reduction in the options that borrower with less than perfect credit now have before them when the time comes to purchase a new property or refinance and existing one.

The good news is that this will probably not be the case for an extended period of time. There are already signs that the lenders that still offer products for borrowers with non-traditional and damaged credit needs, are looking for ways to re-expand their guidelines, or to develop new loan vehicles that meet the needs of these borrowers.

Look for investment banks to lead the way in the development of these new products, that will allow borrowers to accomplish their home finance goals, while offering better protection to homeowners.