Jim Cramer's of CNBC's "Mad Money" says the following....

"I think that 50% of ALL loans made in 2006 are going to go bust. Not (just) prime, not (just) subprime ... 50% ... it makes too much sense to walk away from your home. Walking away from your home that you bought in 2006 is the smartest economic desicion that you might make. That is not a dangerous thing. I would rather have you keep your car and keep your credit cards and lose your house, if your equity is down 20%. Because you can't build equity in your home if your home is declining. Now no one wants to hear that you should walk away from your house, I'm saying economically that people who are walking from their houses with a piggyback loan and a mortgage are making sense. I'm saying they are not being yahoo's, that they are making sense. If you have a home equity loan on top of an Alt A, I'm telling you to walk away."

You can see the interiew here...  

http://www.cnbc.com/id/15840232/video/448686929 

I apologize but you have to register with CNBC if you are interested in seeing the video and I couldn't find it elsewhere.

Cramer also predicts, in this clip, that IndyMac may go bust.   This is incredibly scary stuff for our industry.   

The ALT-A lending products are being dramatically eliminated.    These are the credit scores under 700, the interest only loans, and the lower income documentation loans.  Those that are keeping them have raised their rates.  I quoted a 100% stated income loan today with a rate of 7.375% on the first 80% and he has 720 credit scores and 10 months reserves in the bank.  The rate on the 2nd was 10.125%.    Its not cheap.

Make sure you meet with your preferred lender in the next week to go over lending changes and how they affect your clients ability to buy new homes.  You will want to make sure he can do FHA and understands products like MyCommunity and the other offerings of Fannie Mae.  The future of your business may rely on it.