If you're like me then you're maybe just a little tired of all the constant changes happening. Especially if you have made your market in a specialty (Sub 100%/ALT 95%/POA/Scracth & Dent Credit). It's been a helluva year to keep your head screwed on tight.
I've been in the business for nearly 8 years so this would be my first down cycle and what a friggin downer it's been!
Many of you remember the early 90's (Fall 93-Summer '99) and others even recall the mid and late 80's you folks are all probably wondering why you bother any more and are deciding that you really really like to help people AND the lifestyle aint' that bad either! Nothing beats not going to an office 9-5 style grinding away with little to show for it.
ANYWAY...The first week of January is great for a little reflection.
I was thinking about how scary 2007 was and then about how 2008 would be and I REMEMBERED: When I got to the mortgage business in 2000 there wasn't nearly the product we have now and people were making glorious amounts of coin. I mean really. Not only that but in on values that were half of what they are today! (California Home prices increased on average 100% in the last 6 years).
Just a little re-cap of what is still out there:

I remember when you had to get an exception and produce "compensating factors" to get a lender to budge on a back-end ratio of 36-38.
You will be able to use ratios to 60 and beyond on a strong file in 2008.

"stated income" on conforming products was limited to 65%-70%.
We expect FNMA to continue to offer this product in 2008 at 90%.

90% investor loans were unheard of-75% was the standard.
This may be reduced to 85% in California, but hey, still better than 75%.

You ALWAYS needed 2 years of 1040s on self employed borrowers.
You will only need to produce one year of 1040s on many borrowers in 2008.

You ALWAYS needed 2 months PITI in reserves or more.
You will be able to close loans with no reserves in 2008.

All gift down-payment only happened with 20% down.
We will do all gift down loans with MCM and Flex in 2008.

100% Financing was basically unheard of and if it existed you need 3-6 month PITI to do it.
We will be able to 100% financing in many markets (FHA with DPA and MCM/Flex)

95% cash-out didn't exist.
You will be able to do 95% cash-out on FHA in 2008.

We can still make more loans in 2008 than we could just a 7-8 years ago.